Hille has enjoyed a strong 2008 season and was selected in the Victorian squad earlier this year.
Chief Operating Officer, Travis Auld, said the 201cm, 108kg big man is a key part of the Bomber’s future.
""David has started off the year really well. He made the Victorian squad and was unlucky not to be selected in the final team,"" Auld said.
""As a member of our leadership group, David plays a very important role on and off the field, particularly given the age of our list and the number of younger guys playing senior footy at the moment.
""He seems to enjoy the challenge of leading our younger players, he turns 27 next month and is nearing 150 games with the club.
""We expect him to continue to be an important player for us over the next few years and this new contract is a major boost for the club.""
Hille was taken with pick 40 in the 1999 national draft and made his AFL debut in 2001.
He has played 133 games with the Bombers.
Earlier this month, Essendon signed new two-year contracts with Scott Gumbleton, Leroy Jetta and Henry Slattery and offered a one-year contract extension to 2007 recruit David Myers securing them at the club to 2010.
