Daniel averaged 21 disposals, 3.7 marks and 3.3 tackles in his 24 games in 2016.
The 20-year-old, who played an integral role in the side’s first premiership since 1954, said it was an easy decision to extend his contract with the premiers.
“(To re-sign) was pretty much a no-brainer,” Daniel told the club’s website.
“The way we as a football club are able to get around each other and I guess, love each other, is pretty special to me, and that’s why I loved to stay around.”
Daniel has played a total of 34 games with the Bulldogs since being selected with pick No. 46 in the 2014 National Draft.
The reigning premiers also remain optimistic of retaining electric running-defender Jason Johannisen, who stated the club and he were currently in talks to sign an extension.
The Bulldogs won’t be slipping under opposition radars this season, and his signing will be a major morale boost to their premiership defence.