Coach Dean Bailey has set his sights on an improved showing from his club in 2010 after agreeing terms with Melbourne on a one-year contract extension.

The former Essendon player hasn't enjoyed the most successful introduction to senior coaching after taking over at the end of 2007 following the mid-season departure of Neale Daniher, winning just seven times from 44 games.

But while his winning percentage in two seasons so far has been a dismal 16 percent, Bailey believes the batch of youngsters the club has chosen in the past three national drafts will help the Demons climb the ladder this season.

"It's great that the club has shown faith in me as a coach," Bailey said following confirmation that he has signed a new deal that covers both the 2010 and 2011 seasons, after he originally signed on for three years.

"I'm looking forward working with this group as they develop as both players and people."

"The last two seasons have been years of great change, and it has been well documented that we have rebuilt through the draft but now it's a matter of putting game time into these young players as a group."

"This year, I expect our playing group to have a competitive attitude right from the start of games."

"Last year, we won 32 quarters of football and this has to change."

"We need to be in games right from the opening minute in order for us to win more matches for our members and supporters."

President Jim Stynes, who was present at the announcement at the MCG on Wednesday of Bailey's new contract, said the club has backed its coach to continue developing the young team.

"This announcement is a show of faith and confidence in Dean as senior coach," Stynes said.

"We have belief in the direction he is taking the group, and a strong understanding of what he brings to the club."

"In just over two years, Dean has laid the foundations for what we think will be a prolonged period of achievement."

"Solidarity and stability is important with a young group of players, and this decision will give them confidence moving forward."

Stynes also dismissed concerns that the board has acted hastily, with some critics suggesting that it should have waited until at least midway through the 2010 season before making any such move.

"We made this decision in our own time," Stynes added.

"The process started at the end of last season, during the football department review."

"The decision to extend Dean's contract was ratified by the board of directors, at last Friday's board meeting."

"We see Dean as being a big part of the long-term future of the Melbourne Football Club."

"This now gives him appropriate time to drive his vision and expectations for the playing group."