Transgender athlete Hannah Mouncey has been declined permission to play in AFLW by the League.

Mouncey, who is 190cm tall and 100 kilograms, has dominated in the ACT women's AFL competition and has nominated for the AFLW draft.

The 27-year-old has represented Australia in European handball, but has transitioned to a female over the past two years.

However, in a statement on Tuesday, the AFL stated Mouncey's โ€œphysical disparityโ€ was โ€œsignificantโ€ and that it would provide her with an โ€œunreasonable advantageโ€ over her opponents.

โ€œIn this circumstance, the AFL has made a decision that the physical disparity between Hannah and other AFLW players is significant, in that it would have an effect on the AFLW competition and give rise to an unreasonable advantage.

โ€œThe subcommitteeโ€™s decision took into account the stage of maturity of the AFLW competition, its current player cohort and Hannahโ€™s individual circumstances.

โ€œThis decision solely relates to Hannahโ€™s nomination for the 2018 AFLW draft and participation in the 2018 AFLW competition.โ€

Despite the AFL's stance, Mouncey is under the testosterone levels that would allow her to play international sport under IOC regulations.