Allan, the son of former Hawthorn premiership player Ben Allan, was selected as a first-round pick by Collingwood in November last year and was initially contracted for two years.
While he sat out the first half of last year’s WAFL season due to injury, the 18-year-old managed to average 25 disposals across five appearances with the Claremont Colts.
At 194cm, the versatile midfielder has impressed with his athleticism during the pre-season.
“Ed’s ball winning ability, speed and endurance, combined with his size, makes him an exciting prospect for our future,” Collingwood General Manager of Football Graham Wright said.
“Ed had some injury issues in 2022 and while he’s completed most of the pre-season, we will ensure we take our time with him and manage his development.
“He is a high quality young man and we’re wrapped to extend his contract by a further two years.”