AFL chief executive Andrew Demetriou has pledged the league's total support to any player prepared to out himself as gay.
Former Victorian premier and Hawthorn president Jeff Kennett has speculated that up to one in every 20 AFL players may be gay, but hiding their homosexuality for fear of being ridiculed.
Kennett is concerned that players who effectively live a double life are at greater risk of depression.
Demetriou, however, has rejected Kennett's assertion that the sport has 'along way to go' in this area.
"It's entirely a choice for that particular person," said Demetriou.
"But if a player wanted to make it public about his sexual preference then he would get absolutely nothing but support from the AFL, and nothing but support from everyone in the industry."
"Everybody knows we're about inclusion."
"I'm really proud of the way that the AFL family embraces people whatever background they've got."
Demetriou said all current AFL players have been shown a DVD in which Olympic silver medalist Daniel Kowalski talks about the issues he had to weigh up before deciding to come out.
Demetriou said that demonstrates the league is 'ahead of the game' in terms of improving the awareness of players.
He said the AFL had made a special point of broadening its rules on racial and religious vilification to prevent discrimination on the basis of sexuality.
"We've actually legislated against that," Demetriou said.
"We're very sensitive to the personal choices that people make."
Asked whether it was only a matter of time before an AFL player comes out, Demetriou said: "I suspect so, but it's entirely a person choice."
"I think you're going to be very surprised by the reaction you'll find in this particular industry and this family."
"Everyone will be embraced regardless of their sexual preference, regardless of their multicultural or religious background."
"We are an inclusive family and one that I'm very proud of.'
Demetriou was speaking at the launch of a DVD to be distributed to more than 1000 football clubs across the country entitled 'Taking the Tackle', promoting respect for women.