Tasmanian Premier Peter Gutwein has urged the AFL to consider reconfiguring the competition by replacing one of its less profitable clubs with one from the Apple Isle.

AFL operating costs are being drastically scaled back as the game tackles its biggest-ever financial crisis in the face of the coronavirus pandemic.

Tasmanian Premier Peter Gutwein. Credit:AAP

The AFL has taken out a $600 million loan to keep the competition afloat and chief executive Gillon McLachlan has consistently said the league's aim is to ensure the survival of all 18 existing clubs.

But Gutwein on Monday said it was time for the AFL to consider whether it could afford to continue propping up struggling clubs in dire financial circumstances.