The Lions went through the home and away season undefeated before coming up short against Shepparton United at Deakin Reserve on grand final day.
The reserves side has regularly featured at the pointy end of the season in recent times, including a premiership in 2019.
Seymour Lions president Gerard O’Sullivan said Dundon took to the role incredibly well in 2023.
“Nick did a fantastic job last season with a young group of players, albeit one with plenty of senior footy experience,” O’Sullivan said.
“To have someone like Nick, who has high-level playing experience and is still relatively young, is a big boost for our boys.
“Nick will be pulling on the boots this season following a knee reconstruction, so we’re looking forward to seeing him put in plenty of work on and off the field.
“He played a massive role in the success of our overall football program last season, and we’re confident that last year’s coaching experience will hold him in good stead this season.”
Dundon said the entire playing list was looking to improve on last year’s results.
“Everyone around the club is hungry to have a big season after a bit of a disappointing end in September,” Dundon said.
“We’ve got a really close group of players who are only going to get better the more they play together.
“Across the entire playing list, there’s a high percentage of boys with senior playing experience, which really helps build depth into our reserves.
“I’m looking forward to pulling the boots on again while supporting the development of our younger players.”