In an added subplot to this Saturday night's semi-final between the Lions and the Crows at the Gabba, Bailey officially turned down a monster offer from Adelaide.
The restricted free agent has penned a new eight-year deal to remain with the Lions until the end of 2034.
"This club means so much to me - I came here as a young player and have grown up here and to know I will be here long-term is something I'm really proud of," Bailey said.
"I would like to thank the club, my partner Em, my family and my management for being so supportive throughout this process.
"I love what we as a club have achieved during my time here and I am super excited about what we can continue to achieve together."
Bailey has joined Sam Walsh (Carlton), Kysaiah Pickett (Melbourne) and Caleb Serong (Fremantle) as the only AFL players contracted until the end of 2034.
A two-time All-Australian, Bailey has enjoyed another outstanding season with 31 goals and averaged a career-high 21.7 disposals.
The 26-year-old's call comes as the Lions prepare to farewell star veteran Lachie Neale, who is expected to move to Collingwood during the trade period.
Lions football boss Danny Daly hailed Bailey's decision as a significant moment for the club.
"There is no doubt Zac was highly sought after, so for him to choose to stay says a lot about his belief in the club, his teammates and the environment we have built here," Daly said.
Bailey's signature comes just three days after the Lions were unexpectedly smashed by Sydney in the qualifying final at the SCG.
Meanwhile, Rowan Marshall is demanding a trade from St Kilda, a year after Geelong tried to lure the experienced ruckman.
Marshall is contracted at the Saints until the end of next season, with the Cats and Essendon his strongest suitors.
He tried to leave for Geelong at the end of last season but hasn't yet nominated his preferred new club.
Cats coach Chris Scott was tight-lipped on his club's prospects of signing the 30-year-old.
"If I was (interested), I wouldn't tell you," Scott told reporters on Tuesday.
Scott said the fact Marshall remained contracted at the Saints complicated matters.
Marshall played 21 games this season for the Saints, who opted for ex-Carlton recruit Tom de Koning as the club's first-choice ruck.
St Kilda said they would consider their options ahead of the trade period which opens on October 5.
Meanwhile, the No.4 pick from the 2023 draft, Zane Duursma, has told North Melbourne he wants to move to Melbourne.
The Demons have long been linked to the 21-year-old, who has played 38 games for the Kangaroos in three seasons.
The Demons are understood to have separately told former captain Jack Viney that he's welcome to explore a trade after an injury-cruelled season.
Viney, 32, played only one game - in Melbourne's wildcard finals loss to Carlton - after having pre-season Achilles surgery and then suffering with back and toe injuries.
Viney, a premiership player in 2021, is contracted until the end of 2028.
8°C