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Admitting Melbourne's initial offer was an ego blow, fullback Ryan Papenhuyzen is comfortable about his Storm future after signing a contract extension.

Gun fullback Ryan Papenhuyzen says he's betting on himself after knocking back more money at other NRL clubs to chase a premiership with Melbourne.

The Storm announced on Thursday that the 26-year-old had signed a one-year contract extension that will keep him at the club until the end of the 2026 season, with a mutual option for an additional year.

Papenhuyzen was initially offered a three-year deal by Melbourne but with a hefty pay cut which he admitted was an ego blow.

"When the first offer came through, I was a little bit disheartened and sort of thought, yeah, it's probably a little bit of a hit to the ego taking a pay cut, but after sitting on it for a while, it was more than the money," said Papenhuyzen, who made his NRL debut in 2019.

"It's a growth decision - it's been an environment where you've built this thing together and you just want to see it out and see some good things happen from it."

With a history of serious injuries that has limited him to 30 games over the past three seasons, the security of a long-term deal was a lure but he said he backed himself to become even more valuable to the club.

"It's a great opportunity as I haven't played too many games the last few years, so signing a long-term deal, I didn't really feel comfortable," said Papenhuyzen, who returned to running on Wednesday after getting plates and screws removed from his ankle.

"I thought I'd rather get back into a rhythm and prove to those people at the club that I've still got what I need to be a premiership player and a valuable member of the squad so we thought a one-year extension would be a good timeline to be able to do that.

"It's having the belief that I can go on with it and can be a better player and my best isn't past me.

"It's a bet on myself but I'm a big believer in everything happens for a reason so whether I get an injury and that's it.

"People take security for different reasons, with a family to look after and whatnot ... but I didn't really need to think about family and just focus on now and if it will be, it will be."

Papenhuyzen, Jahrome Hughes and Harry Grant are now all signed until the end of 2026, while fellow spine star Cameron Munster is locked in until 2027, boosting Melbourne's hopes of winning a premiership after this year's grand final defeat.

The Sydney-born speedster said the strength of the Storm and prospect of claiming his second NRL title was a deciding factor.

"I feel like we've got a really good cohesion and connection at the moment and in terms of winning premierships, which is what the main goal is, the feel we've got with this team, that was a massive help in that decision," he said.

"It's quite easy to look at the grand final and have it as a disappointment but if you look at the whole year as a general, it was a big success."