Unless the town council removes its ban on community football at Traeger Park, the AFL may cancel the annual Melbourne Demons match from Alice Springs.
The Alice Springs Town Council withdrew backing for the Central Australian community football league, escalating the issue with AFLNT.
The league "reviewed the viability" of holding the Round 16 match between Melbourne Demons and GWS Giants in Alice Springs in June in an email to the council, seen by the ABC.
AFL and AFLNT comment has been requested. Mayor Matt Paterson told the ABC that Alice Springs won't be "held hostage to the AFL and their bullying attitude"
"The AFL game is a deal between the Northern Territory government and the AFL – it's got nothing to do with the Alice Springs Town Council," he added.
Cr Paterson advised against making football choices in Alice Springs without recent experience.
Under its licence deal, AFLNT announced Thursday evening that some games would be played at Traeger Park. The next day, the council reiterated that Traeger Park would not host community football in 2023.
The statement alleged AFLNT violated the park licence agreement, which extends until 2025.
Cr Paterson stated AFLNT neglected to give the council 30 days' notice of the competition fixture before the opening round.