Essendon defender Andrew McGraths contract extension talks have stalled, according to Channel 7's Tom Browne.

Speaking on Talking Footy on Monday night, Browne indicated that McGrath's management team were prepared to wait on an extension as the rookie's value continues to rise.

Essendon were prepared to offer the defender an extension a few months ago, however after a slight delay, the McGrath camp has since decided to hold off on talks with the club.

Along with Hugh McCluggage, McGrath remains the only player picked in the top 10 of the 2016 draft not to have signed a contract extension.

According to Browne, McGrath could command up to "$400,000" in the third year of his career, a figure that will only continue to rise should McGrath continue to star in the red and black.

In his debut season, McGrath has averaged 19.3 disposals and 3.9 marks with the Bombers while sitting third among all rookies for effective disposals percentage per game.

Essendon performance coach Guy McKenna revealed that the coaching staff had been thrilled with McGrath's first season with the club and intend to transition the dashing youngster into the midfield in 2018.

“There’s certainly been some debate already with (John Worsfold),” McKenna told The Essendon Footy Panel.

“Woosh has been fairly steadfast in saying we know he’s played midfield as a junior and he probably settled across half back, which is where he became the player he was.

“We know he can play in the midfield and leg speed is something we need in the midfield and he makes very good decisions in a phone box.

“He’ll spend the summer in the midfield group and then start to play more in the midfield.”