Hill is bound to the Hawks to the end of 2014, having signed a three-year contract when he joined the Hawks at the 2011 national draft via pick No.33.
But AFL.com.au understands the Hawks opened negotiations with Hill last month aimed at ensuring the wingman remains in the brown and gold for at least the next two seasons.
After playing five AFL games in his debut season last year, Hill has flourished in 2013, playing all but one game and giving the Hawks an injection of pace and class on the wing.
The 20-year-old's emergence was recognised when he received the round six Rising Star nomination after his 17-possession, two-goal performance in the Hawks' 11-point win over Adelaide.
The Hawks' move to lock Hill away follows the club's success re-signing Cyril Rioli, Jarryd Roughead, Luke Breust and Ben Stratton to long-term contracts earlier this year.
The West Australian is the brother of Fremantle star Stephen Hill. The brothers hope to play together in the Indigenous team that will travel to Ireland for the International Rules Series in October.