Melbourne is set to negotiate a contract extension with head coach Simon Goodwin before Christmas, as reported by AFL.com.au.

Chief executive Gary Pert and chairman Glen Bartlett are organising a new deal for Goodwin following Melbourne's first top-four finish since 2000.

Goodwin is set to come out of contract at the end of the 2019 season.

The former Crows skipper was originally on a five-year deal that began before the start of the 2015 season, starting as an assistant coach under Paul Roos before taking over the senior role in 2017.

While the Demons hope to have a new deal finalised before the start of the upcoming 2019 season, Goodwin could put pen to paper as soon as January.

Goodwin has been essential in the recruitment of numerous Demons in the past two seasons, notably former Gold Coast Suns co-captain Steven May in this year's AFL Trade Period.

He also recruited former Essendon pair Michael Hibberd and Jake Melksham, having formed relationships with both players during his time as assistant coach at the Bombers.

May spoke about his instant connection with Goodwin during the process his move to the Demons.

"When I met with Simon Goodwin, there was just something about him and their pitch and how they can get the best out of players," May told Channel Nine in October.

"If you look at Hibberd and Melksham, they've been able to go and extend their careers at the Demons and get the best out of themselves."

"I felt like my career had plateaued a bit, I take full responsibility for that, but I just feel a fresh environment and those sorts of players and coaches around me can only help me."

"A lot of the offers and the pitches were about the club and where they're heading, but Goody was a lot about what he can get out of me as a player and what I can offer our team".

"He made me feel really valuable and he touched on their family values and what it is to be a Demon and it's something that resonated with me."

May and Goodwin will be crucial to the Demons push for the clubs first premiership since 1964 next year.