Having stood down as skipper ahead of this season following six years in charge, Heppell has missed just one match during the 2023 campaign.
The 31-year-old has played 233 games for Essendon since his debut in 2011.
"We've got an exciting crop of players coming through the club who have been fantastic this year," Heppell said.
"Rolling into the club every day alongside them, all with the drive to develop and get better, is such a motivating factor in me going around again.
"I've loved my footy this year but especially enjoyed seeing my teammates grow and improve.
"I can't wait to see the development continue throughout the group in 2024."
Heppell will be determined to help the Bombers finish inside the top-eight again next year as Essendon attempt to break a finals win drought dating back to 2004.
The Bombers' September aspirations ended in embarrassing fashion last Saturday, when they suffered a 126-point smashing at the hands of Greater Western Sydney.
Long-time Essendon list and recruiting boss Adrian Dodoro said Heppell's leadership would be crucial to the club's development.
"Although Dyson no longer holds an official leadership position within the team, the guidance and support he provides to his fellow teammates is extremely valuable to our young side," Dodoro said.
"His passion and love for the Essendon football club is immense, and he has been an instrumental figure around the club for many years.
"We are thrilled to have Dyson remain at the club, not only for his contribution on the field but for his impact on the wider club."
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