The AFL has scrapped the Grand Final replay, with extra time to decide this year's premiership in the case of a draw.

The League confirmed the historic decision on Tuesday following a meeting of the AFL Commission. 

A Grand Final replay has taken place three times – in 1948, 1977 and most recently in 2010 when St Kilda lost to Collingwood. 

Under the new rules in the case of a draw, five minutes of each time to both ends of the ground will be added to decide a winner plus time on. 

If the scores are still tied at the end of the second period, the siren will not ring until the next score, which will decide the flag.