Transgender athlete Hannah Mouncey says she's "disappointed" at not being allowed to compete in the national women's football competition in 2018, after the AFL declined her request to nominate for the AFLW draft.

The AFL based its decision on the Victorian Equal Opportunity Act, which states that athletes can be discriminated against based on their sex or gender "if strength, stamina or physique is relevant".

The league has left the door open for Mouncey to be eligible for the 2019 draft, but she would have to go through a similar process.

"While I am disappointed with the AFL's decision regarding my participation in the AFLW draft, I accept the league's decision and thank them for the genuine way in which they approached my situation," Mouncey said in a statement.