The 22-year-old signs on until the end of the 2023 season, looking to add to his seven appearances in the blue and gold.
After making his debut and sole appearance late into the 2020 season, Foley's return to the AFL this year was as a medical sub in Round 8 against Hawthorn.
After falling out of favour for the next several games, Foley was able to break back into Adam Simoson's side and amassed 22 touches against Richmond in Round 13.
Showing plenty of promise and attack out of defence, Foley will be a key retention as the Eagles look to steer back toward a finals finish in 2022.
“It’s great to be going around for another two seasons at the footy club,” Foley said on the announcement.
“Three seasons in, it’s gone very quick... I’ve loved my time at the club.”