The 31-year-old is now guaranteed to extend his decorated 255-game career at Fremantle into a 15th AFL season.
Mundy started the year on the AFL’s free agency list after originally signing a three-year playing deal that was due to run out at the end of this season.
But as of this month, the 2010 Doig medallist has met terms in his contract needed to trigger an extra year that will keep him at the Dockers in 2018.
The extension is a timely reward after a difficult 12 months.
Mundy, who turns 32 in July, was thrust into the captaincy role last year during one of the toughest seasons in Fremantle’s history as the club crashed from the minor premiership to win just four games.
He was subsequently replaced as skipper by Brownlow medallist Nat Fyfe.
Mundy’s manager Anthony McConville, from Mac’s Sports Promotions, confirmed the contract extension, but would not discusses what milestone had guaranteed the extra year.
“He’s reached triggers from his previous contract to play on into 2018,” McConville said.
A contract trigger is typically linked to performance indicators such as the number of AFL games played across the length of the deal or placings in club best-and-fairest counts.
Mundy has already played more games than any footballer in Fremantle’s history other than retired champion Matthew Pavlich and has enjoyed a career renaissance as a key figure in the club’s dramatic revival.
The veteran has been pushed forward across a three-game winning streak and is the Dockers’ equal leading goal kicker this season with six majors.
He has also proven he can still be a match winner around the ball, amassing 12 disposals and three clearances in a telling final quarter performance that helped drag the Dockers over the line in Saturday’s night’s thrilling five-point win over North Melbourne at Domain Stadium.
Mundy is averaging 26 possessions and five clearances this year. His only better season statistically came in 2015 when he won his only All-Australian guernsey.
A hamstring tear that will sideline Stephen Hill for up to a month is likely to force the former captain back into a more permanent on-ball role starting with Saturday night’s western derby.
Hill’s injury has opened the door for a potential recall for axed wingman Danyle Pearce.
Second-year midfielder Harley Balic will also be available after recovering from a minor hip complaint.
Pearce, 31, was dumped to the WAFL for the first time in his five-year career at Fremantle after the side crashed to an 89-point away defeat to Port Adelaide in round two.
Coach Ross Lyon has flagged an opening for Pearce to fight his way out of selection exile.
“I’ve got full faith in those guys that went out,” Lyon said.
“There’s no doubt Danyle Pearce, Cam Sutcliffe, (Nick) Suban – they can come in and play really good footy.”