Melbourne captain James McDonald will play on with the AFL wooden spooners next season.

The two-time best and fairest, who turns 33 in October, has signed a new one-year contract.

Demons list manager Tim Harrington said McDonald had shown solid form this season and his leadership remained vital given the club's young list.

"He has shown this year that he still has much to offer at the elite level and we see his leadership as a huge asset to the Melbourne Football Club," Harrington said.

"He sets a great example for our young players with his dedication to the team cause."

McDonald is Melbourne's most experienced player, having amassed 235 senior games since his debut in 1997, after being picked up in the first ever AFL rookie draft the previous year.

With Melbourne's second oldest player, forward Russell Robertson, having parted with the club it leaves a three-year age gap between McDonald and the next oldest, midfielder Cameron Bruce.

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