Pickett's future has long been a point of discussion amid expected interest from rivals interstate clubs, with South Australian and Western Australian sides believed to be keen on the premiership forward's services.
The new contract will see Pickett signed until 2027, with the young star expressing his delight in re-signing with the red and blue.
“I'm very excited to be signing on and continuing my career in the red and blue,” Pickett said.
“The club has embraced me and my family, and I can't thank them enough for their support. Everything I do is to make my family proud and the respect and understanding my teammates and coaches have shown us means a lot.
“I'm very thankful to all the fans for their support too and am excited to be part of the club for at least another four years.”
Pickett's signature adds to a bevy of senior players that are locked in at the Demons for the long haul, with Clayton Oliver, Christian Petracca, Christian Salem, Bayley Fritsch, Angus Brayshaw, Brodie Grundy, Trent Rivers, Alex Neal-Bullen all signed until 2026 or further.
Demons list manager Tim Lamb commended Pickett and his influence on the club since joining Melbourne.
“We are obviously thrilled that Kozzy has agreed to terms and will remain with us until at least the end of 2027,” Lamb said.
“At just 21 years old, he has already proven himself to be one of the premier small forwards in the competition, kicking 40 goals in each of the last two years. Everyone has now seen his ability around the ball, and he is just scratching the surface in terms of where he can take his game.
“Kozzy's ability to hit the scoreboard, combined with his genuine appetite to chase and tackle, makes him an invaluable asset to our team. His rapid development is a testament to his hard work and the terrific environment and culture we have here at Melbourne.
The Woodville-West Torrens product has played 67 games for Melbourne, including their 2021 premiership win, and has booted 100 goals.
Pickett was drafted to the Demons as the 12th overall pick from the 2019 National Draft.