The 29-year-old, who is enjoyed his birthday on Sunday, has been a key-cog in Melbourne's revival to a grand final appearance this season.

He has kicked 31 goals from 22 games, averaging 14.3 disposals (elite), 5.9 score involvements (above average) and 5.4 marks (above average).

Speaking to Melbourne Media, McDonald said he was thrilled to sign on until at least the end of 2024.

"It's been an awesome season for the team and I'm pretty excited to be able to do this," he said.

"I'm looking forward to the rest of my career at Melbourne and I'm thankful for the club and everything they've given me and my family so far.

"I'm really excited to keep going."

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Flashback to 12 months ago and it was a different story for McDonald and the Demons.

The club had missed the finals for the second-straight season and McDonald was heavily involved in trade rumours.

"Very different scenario this time last year, little bit more positive (now) and a bit less stressful which is nice," McDonald said.

"It's been an awesome season for the team and I'm pretty excited to be able to just do this and do it in a pretty low-key way and just have it done with the footy club.

"Now we can move on to a more important thing next weekend."

Melbourne takes on the Western Bulldogs in next Saturday's grand final at Optus Stadium from 7:15pm AEST.

It will be the Demons first grand final appearance since 2000 and they are seeking their first premiership in 57 years.

The Bulldogs last won a premiership in 2016 over Sydney, breaking their own 62-year drought at the time.

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