Originally off-contract at the end of the season, the forward's new deal will keep him in the black and white until at least the end of the 2025 season.
The 26-year-old has played 13 matches so far this season, averaging 13.3 disposals per game to go with 2.6 clearances and 14.7 hitouts.
He has also already kicked 12 goals for the club this year, to go with his 22 in 18 games last year, with Cameron quickly becoming a prominent part of the Magpies' set up.
His 13 games this year has taken him to a career total of 40, having shifted from the Sydney Swans - where he was drafted - ahead of the 2020 seasons. Cameron played just a single game for the Swans during two seasons with the club in 2018 and 2019 to start his career.
Cameron has become a key in the ruck for a Collingwood side sitting on the edge of the top eight after Brdie Grundy suffered a long-term injury during Round 6.
His form has seen a new deal signed, with Collingwood general manager of football Graham Wright telling club media that he has continued to improve in the last few years.
“Darcy’s performances over the past few years have continued to improve and become really consistent, both as a forward and in the ruck,” Wright said.
“This year with Brodie being unavailable due to injury, Darcy had step up to lead our ruck division and has played a key role in our improved recent form.
“We’re delighted he’s committed himself to the club for a further three seasons.”