The restructured deal is the richest sports agreement in Australian TV history and likely to see Seven televise fewer games but maintain exclusive rights to the Grand Final.
Seven will also start showing games in HD.
News Corp executive Rupert Murdoch, Seven chairman Kerry Stokes and Telstra chief executive Andy Penn joined AFL head honchos Gillon McLachlan and Mike Fitzpatrick to announce the record breaking deal on Tuesday afternoon.
Channel Nine’s $925 million deal with the NRL will involve four free to air games each week, with a Foxtel deal yet to be finalised.
The NRL estimates its total broadcast rights deal will top $1.5 billion once the Foxtel deal is confirmed.