AFL boss Andrew Dillon concedes the league has plenty of work ahead to combat an alarming decline in the number of Indigenous players at the top level.

There are 62 First Nations players on AFL club lists in 2026, a significant drop from the record 87 in 2020.

In response, the AFL has launched a First Nations Impact Fund, with about $300,000 to be invested annually in partnership with clubs.

It aims to grow First Nations representation across the industry, creating culturally safe environments and calling out racism "wherever it exists".

The league is also considering giving clubs an extra list spot specifically for First Nations players.

"The plan for me is about providing opportunity. That's why we're looking at investment in the talent programs as really important for us," Dillon said on Monday.

"We're looking at different list mechanisms potentially as well, but ultimately it's about investing in grassroots, getting more boys and girls playing, and then making sure there's opportunities at the talent level.

"Then when the players are then drafted we're making sure the First Nations players are staying in the game as long as others.

"There's plenty of work to do but we've got targets in mind and big focus points."

A sub-committee of AFL and club figures met for the first time last week to discuss ways to boost the number of Indigenous players, in a move welcomed by St Kilda star Brad Hill.

But Hill on Monday called for more Indigenous people to be included in discussions - nominating former Carlton and Adelaide champion Eddie Betts among the possible candidates.

"It's something that we want to work on. We want to get more Indigenous players at AFL level," Hill said.

"There's obviously something going on - I don't know if it's at grassroots or wherever it is - but we definitely need to put some things in place to get the numbers.

"I think they've started off well with getting the committee and people behind the scenes to grow the game for Indigenous players and get more at clubs."

Dillon and Hill were speaking at the launch of the AFL's Sir Doug Nicholls Indigenous round, to be played over the next fortnight.

Dillon pointed out nine Indigenous players were drafted by AFL clubs last year, but 11 were delisted.

"The players are there. Would we like there to be more? Absolutely, and that's why we are doing that work," Dillon said.

"It's not only just about identifying (talent). It's then when the players are on a list, how can we make sure that the Indigenous player stays on the list as long as any other player."

Dillon said the Indigenous All-Stars team will feature on the representative calendar in future after a successful return in 2025.

But the league is not planning on scheduling an increased number of games in the Northern Territory, following St Kilda coach Ross Lyon's call for nine fixtures each season in Darwin.

The Northern Territory is hosting three games - two in Darwin and one in Alice Springs - in 2026.

"I think two or three or four is about the right number for the NT at the moment," Dillon said.