Speaking on 3AW on Friday morning, Demetriou strongly defended retaining the capacity for players who have taken illicit drugs to self-report without recording a strike under the policy's three strikes policy.
"We know for a fact that the self-reporting mechanism has helped save two players' lives," Demetriou said.
"These are people with other issues. They self-report because they have got other issues going on. They don't self-report because they want to avoid a strike because they are some sort of party boy."
Demetriou said the mechanism that allowed players to seek help voluntarily without fear of recording a strike allowed intervention to happen if required.
"The self-reporting mechanism is a key component of the drug policy. It helps someone who has got other issues to go there go and self report and say 'I need help' and that is what it has actually done," Demetriou said. "The medical officer can then intervene and then perhaps re-direct that player to get some significant help from an expert in the field."
The self-reporting mechanism came under fire late last year when it was alleged that players were using it after taking drugs to avoid positive tests and therefore a strike.
It has led to a tightening of the policy with players now only able to self-report once during the career to stop any potential for a player to rort the system.
However AFL Medical Officer Dr Peter Harcourt said that in his experience the vast bulk of players had used the mechanism as a way of seeking legitimate help or to admit to having made a serious mistake.
The AFL revealed on Thursday that there were 26 failed illicit drug tests during 2012 a that a similar number of players had told AFL Medical Officers they had used illicit drugs under the self-reporting mechanism.
However the AFL claims that many of the players who self-reported either made a mistake, often under the influence of alcohol or had mental health issues that needed treatment.
Any player who self-reports is subject to questioning from a doctor to understand the nature of the issue and is likely to be target tested.
Demetriou also emphasised that there were AFL players who have no issues with illicitdrugs being treated for mental health issues.
With the mental health and wellbeing of AFL players and coaches high on the AFL agenda, Thursday's AFL CEOs meeting heard a presentation from AFLPA CEO Matt Finnis on what might be done to give players a better work-life balance and normalise the structure of their lives.
Many believe that the 'volcanic behaviour' of players post-season is related to the regimented lives they lead for much of the year as part of an AFL playing list.
Demetriou said AFL Football Operations Manager Mark Evans will head up a group consisting of CEOs, coaching, playing and high performance manager representatives to examine the ramifications of a longer break and how the season should be structured to allow players to lead a more normal life.
"[There is] general support around the industry that we have not quite got the work-life balance right," Demetriou said.
