The 21 year-old’s new deal will see him Don the Sash until the end of 2019.
Fantasia said he is excited to be part of the Club’s Comeback Story.
“Essendon has such a strong culture and I’m thrilled to be a part of such a proud Club,” Fantasia said.
“Melbourne is my home now and I want to be a leader of this football Club over the next few years, alongside Dyson Heppell, Zach Merrett and Joe Daniher.
“We know there is a lot of hard work ahead, but we want to take this Club to its next period of sustained success.
“It’s a very exciting time for this Club and I’m pumped to be part of it.”
After playing in the midfield and defence in his first two seasons, Fantasia excelled when he was moved into the forward line in 2016.
His blistering pace and nose for goal helped him boot 29 goals in 19 games last season. The impressive tally saw him finish behind Joe Daniher on the Bombers leading goal kicker list.
Senior Coach, John Worsfold, said Fantasia has shown he is committed to helping the Club achieve sustained success.
“Orazio is a young man of strong character who sets a high standard with his commitment to training,” Worsfold said.
“He’ll form a key part of our forward group this season and his willingness to learn gives me a lot of confidence that Essendon fans are going to have an exciting player to watch over the next few years.”
Recruited from Norwood in the SANFL, Fantasia was selected by the Bombers with the 55th overall pick in the 2013 National Draft.
List and Recruiting Manager, Adrian Dodoro, said Fantasia was one of a number of young players who had benefited from the exposure to regular senior football last season.
“Orazio had an outstanding season in 2016 and was one of the bright lights to come from a tough year when it came to results on the scoreboard,” Dodoro said.
“His development was fast tracked to the point where he became one of the most exciting small forwards in the competition.
“He’s an exciting talent that brings speed to our forward line, and in time could add plenty of dash to our midfield.
“Orazio is extremely highly regarded for his professionalism, and he is a great team member who we believe has the potential to develop into a Club leader in the future.”
Fantasia has played 27 games for the Club and kicked 31 goals.