The AFL says it is reassessing a lucrative sponsorship deal with Royal Brunei Airlines amid international condemnation of Brunei's new anti-gay laws.

AFL Europe – the governance body for the sport across Europe – had previously promoted a year-long deal with the state-owned airline as its "biggest-ever sponsorship" agreement.

A strict new sharia-based penal code, imposed by Sultan Hassanal Bolkiah, will punish gay sex with death by stoning once the legislation is fully introduced in 2015.

The AFL, which has pledged to stamp out homophobia in its ranks, made an embarrassing admission on Wednesday that it was unaware of Brunei's adoption of laws introducing harsh penalties for a range of behaviour, including homosexual acts.

It is now reconsidering the deal between its European affiliate and the airline.