Several clubs have been interested in Hansen, a key position player who can fulfil a role at either end of the ground, but he is happy to secure his future with the Kangaroos.
The imminent deal will remove Hansen from the market of restricted free agents that includes Kangaroos' ruckman Todd Goldstein.
Last week, Hansen told AFL.com.au he hoped the deal would be settled soon.
"North's been a great club to me and we're going in the right direction, so there's no reason why we won't get it done," Hansen said.
North also has unrestricted free agents Leigh Adams, Michael Firrito and Brent Harvey.
Hansen played his 100th game for North Melbourne in round one this year, after being selection No.3 in the 2006 NAB AFL Draft.
His form has been reasonable in the opening four rounds and he was a good performer in the wins over the Western Bulldogs and Port Adelaide.
He has taken a club-leading 31 marks, including seven contested this season, and is averaging 16 disposals a game in the first four rounds.
He has kicked 75 goals and played in two finals in his career.
Unsigned key position players under 30 who remain on the free agent list are Melbourne's James Frawley, Carlton's Michael Jamison, St Kilda's James Gwilt and the Western Bulldogs' Tom Williams.
