Promising midfielder Billy Stretch has signed a two-year contract extension with Melbourne.

Stretch, 20, has played a total of 35 games, averaging 15 disposals, since being recruited with pick No.42 in the 2014 National Draft.

Melbourne general manager of football, Josh Mahoney said the club is thrilled to secure the youngster's signature.

“We’ve been pleased with Billy’s continued development this year,” Mahoney told the club's website.

“He’s the ultimate professional off the field and he prepares himself very well every week.

“We think he’s building the habits to be a very good long-term player.”

Stretch has played eight games this season, averaging 19 disposals.