Former Melbourne captain Garry Lyon believes Essendon forward Joe Daniher is the most sought after player in the AFL at the moment.

Speaking on SEN Breakfast on Thursday morning, Lyon said the 23-year-old is even bigger than Dustin Martin and Nat Fyfe, both of which come out of contract at season's end, while Daniher still has a year to run on his current deal.

“He’d be the hottest prospect in footy,” Lyon said.

“Hotter than Dustin Martin and Nat Fyfe.”

Lyon's comments came the morning after Essendon CEO Xavier Campbell joined SEN on Wednesday afternoon, and told The Run Home he believed the club was close to extending Daniher's contract.

“Adrian Dodoro is our list manager and he’s had good dialogue with Joe’s management,” Campbell said.

“I feel like we are in good position. The last update I got was that things were moving well and they were in line with our expectations.

“I know a lot of our fans are keen to see him put pen to paper.”

Daniher is in career best form in 2017 having booted 13 goals from his past three games, and is averaging 7.2 marks a game this season.

The left-footer is on track for career-highs in goals, marks and disposals, which is sure to see opposition clubs take notice should he become available.