Simon Goodwin will round out his AFL coaching apprenticeship with two seasons as Melbourne’s senior assistant before replacing Paul Roos in the top job for the 2017 season.

Melbourne announced on Thursday that Goodwin had signed a five-year contract, with the last three as head coach.

Goodwin, 37, had spent the past four years on the Essendon coaching panel and would have been a leading contender to replace the sacked Brenton Sanderson as Adelaide coach.

But when Goodwin’s close friend and Crows director Mark Ricciuto made contact with Goodwin on Wednesday night after Sanderson’s sacking was made public, Goodwin told him he was already committed to the Demons.

The Demons won only four games and finished second-last on the ladder in their first season under Roos, but the 2005 Sydney premiership mentor still chose to extend his initial two-year contract with the club for one more season.

With Goodwin now out of the running for the Adelaide job, Sydney assistant Stuart Dew becomes the short-priced favourite to replace Sanderson, who was dumped with two years remaining on his contract.

James Hird – who returns to the Essendon head coaching position after serving a one-year suspension for his role in the club’s controversial supplements program – paid tribute to Goodwin’s efforts during his time with the Bombers.

“It’s obviously disappointing to lose a talented coach like Simon, but from the moment he walked in the door at Essendon you could tell he had the ability and skills set to be a senior coach,” Hird said in a statement.

“Simon has done a tremendous job developing and strengthening our midfield group, and to a broader extent the football program in his role as senior assistant.

“Simon will be a great asset for the Melbourne Football Club and I wish him every success.”