The AFL has told Essendon to accept the deal before it or front the commission to contest the charges and risk a harsher punishment.

Should the Bombers fail to agree to a resolution at AFL headquarters on day two of the protracted talks, the proposed sanctions — which seemed close to being settled late on Monday — would be taken off the table with the club facing more severe penalties.

Fairfax Media understands that an agreement between the AFL and Essendon chiefs appeared imminent before nightfall on Monday before senior coach James Hird refused to accept the wording of the charges against him.

With the Bombers now certain to miss the 2013 finals series, the club will also be banned from participating in rounds one and two of the 2013 national draft. The AFL will also ban the club from a selection in round one of the 2014 draft and possibly the second round.