Cleary was selected at Pick No.61 in the 2021 National Draft after being overlooked in 2020, going on to impress at the Sandringham Dragons.
Cleary made his debut in Round 9, 2022 amassing 13 disposals, two tackles and seven marks.
He expressed his gratitude to the Western bulldogs for having faith in him when speaking after signing on the dotted line.
"I'm really thankful to the Club for giving me the opportunity to sign on for two more season," Cleary told westernbulldogs.com.au
"To have that security and show of faith was really important to me and I can't wait to continue to improve as a footballer in the next few years."
Sam Power, Bulldogs' General Manager of List Management and Recruiting said "Luke is a promising young defender that has shown plenty of positive signs across a handful of games at AFL level and in the VFL."
Cleary has played four games at senior level and will be looking to push for more appearances this season.