Hogan has put an end to speculation surrounding his future by agreeing to a new two-year contract extension with the Demons on Tuesday, tying him to the club until the end of 2019 at least.

But the talented key forward had been strongly rumoured as early as this month to be considering a move back to his hometown of Perth with either West Coast or Fremantle, despite still having a year to run on his current deal.

Only a few weeks ago, Eagles football manager Craig Vozzo declared his club's interest in securing the services of the 2015 Rising Star winner.

New Demons coach Simon Goodwin is thought to have wanted Hogan to make a decision on his future as soon as possible so he could start planning for the team's long-term future.

And Hogan, who has spent a large chunk of his post-season in Perth with family, will now be wearing the red and blue for the next three seasons at least in what is a huge fillip for both Goodwin and the club.

"It never really got to that (ultimatum) stage," Mahoney told SEN on Tuesday.

"We had spoken to Jesse and his management at the end of last year and said we'd like to extend him out and both made the decision to hold it off for another season, then we'd get back to it.

"And probably for the last three weeks we have been negotiating and we're happy with the outcome."

Hogan told the club's website that Melbourne was the club that he wanted to be at.

"I really like the city and I'm really excited about what we can do together as a footy club," Hogan said.

"What excites me about Melbourne is the young talent we've got. We feel like we are building something special and that's something I want to be a part of.

"'Goody' (Goodwin) has been great. We've got a really close relationship and I think he is going to be great for me personally next year and the rest of the boys as well.

"I didn't really want all the speculation out there, so there is a bit of relief now that we've got it done and I can just focus on being a footballer again.

"Obviously a lot has been made of me being a Perth boy, but the club has been great in allowing me to head home when I can and that's something that's made my decision much easier.

"They've been really good with my situation and [that's] something that I am really appreciative of."

Despite the intense recent speculation suggesting that Hogan could potentially be headed west in the next few weeks, Mahoney insisted the club was "pretty confident" that the 21-year-old would stay with the Demons and that he would play a key role in the club's quest to win its first premiership since 1964.

"Key forwards are really hard to find and once you find one you've got to make sure that they stay for as long as you can because you build teams around them," Mahoney said.

Hogan's re-commitment to the Demons is a huge blow for the Dockers in particular as they continue to cry out for a star key forward, especially with skipper Matthew Pavlich retiring this year.

In another blow for Fremantle, Giants big man Rory Lobb, another potential target, re-signed with his club on Tuesday.

Fremantle will now possibly have to turn their attention to Geelong's Shane Kersten, with Cam McCarthy all but assured of joining them.

Hogan and Lobb are the latest in a long line of key forwards that Fremantle have chased but failed to sign, including Travis Cloke, Jack Riewoldt and Mitch Clark.

Since making his debut in 2015, Hogan has kicked 85 goals from 41 games.

Meanwhile, Mahoney confirmed that out-of-favour utility Lynden Dunn was seeking a fresh start elsewhere in the trade period, despite having a year to run on his contract, and that if out-of-contract Chris Dawes was to be offered a new deal it would happen at the conclusion of the trade period.