MELBOURNE has re-signed youngster Bailey Laurie to a two-year contract extension as the young Demon grows closer to his AFL debut.

Laurie was due to come out of contract at the end of this season, but the first-round pick from 2020 has inked a deal that ties him to at least the end of 2024.

The 20-year-old, who has been an emergency three times this year for the reigning premier, said he was keen to remain a Demon.

"I'm very happy. I've always known I wanted to sign on and thankfully I've been able to play games this year so I've been able to earn another two years at the club which I'm super excited for," Laurie told AFL.com.au.

"I had a conversation with my manager Robbie D'Orazio and (Melbourne list manager) Tim Lamb and the main thing at the start of the year was to play some footy and focus on that and thankfully I've been able to have a strong start to the year in the VFL. Thankfully I've been able to play some games this year after being injured last year and take some good strides in my development."

After missing his draft season in 2020 due to the COVID-19 outbreak in Victoria, the Oakleigh Chargers product was selected by the Demons with pick No.22 as one of two first-round choices for the club that year, along with defender Jake Bowey.

But he had a difficult initiation to the top level, with Laurie barely playing last year following an accidental collision with teammate Michael Hibberd at training that left him with a nasty fractured eye socket injury.

It left him undergoing surgery and sidelined in a disrupted state-league campaign due to COVID-19's impact on the game.

"It was pretty scary at the start having to get surgery on your face, but I learnt some good habits in rehab and the staff are unbelievable and helped me so much. I was able to look at what others were doing who were playing and see the guys in the AFL team and what made them successful," he said.

"Although I wasn't able to play myself, I think I was able to develop a lot from the players who were around me."

Laurie has impressed with his VFL form this season with Casey, averaging 16 disposals and booting 11 goals for the year. He has learned from many of his premiership teammates, including working closely with forward Alex Neal-Bullen, and is biding his time as a debut edges closer.

"It does feel like my first year in a sense where I've been able to come in and earn the trust and respect of my teammates. It's a bit hard to do that when you're not playing and I feel like the connection has also grown stronger with my teammates," he said.

"I try not to focus on how I'm going to fit into the team or whose spot I'm going to take because I feel like if I do, it will negatively impact my performance and I'll start worrying about the wrong things. The conversations I've had with 'Goody' (coach Simon Goodwin) have been around becoming the best player I can be and when I do get my chance, I can come into the team I'll stay there and won't just be there for two weeks and get dropped.

"I'm just focusing on the process of what makes me a good player and becoming a really good player and if that takes a bit longer than other people I'm more than happy with that, I'll just keep working as hard as I can."