The Australian has reported Hird was offered study abroad, his full salary while suspended, and dropping of the charge between them if he agreed to the AFL's terms.
It also alleged as part of the offer, Essendon were guaranteed none of their players would be charged.
Bombers coach Hird was suspended for 12 months as part of the penalties handed down over Essendon using suspect supplements during the 2012 season.
The club was also fined $2 million and given heavy draft penalties.
Hird had flagged legal action to clear his name. This was never followed through after the penalties were handed down.
AFL chief executive Andrew Demetriou said there had been negotiations with all those charged over the punishments eventually given out.
But he denied any deal was done nor sweeteners given by the AFL to reach an agreement with Hird, or that Hird is being paid by Essendon Football Club during his ban.
"There was no deal done, there were no inducements offered by the AFL for James Hird to reach an agreement,'' he told Melbourne radio station 3AW.
"The agreement was reached on the day of the commission hearing.''
Demetriou said it was absurd to suggest the AFL had made guarantees that no Essendon players would be charged.
"It is absolutely absurd to suggest that the AFL said to someone 'offer up no sanctions against Essendon players'. It's not even within our remit. It's an issue for ASADA."
The Australian alleged Australian Sports Commission chairman John Wylie was involved in brokering what it called a "boys club" deal in talks involving Essendon chairman Paul Little and AFL Commission boss Mike Fitzpatrick before the August 26 hearing.