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North Melbourne have ruled out Taylor Garner from AFL selection for a further three weeks over his involvement in a Sydney bar fight.

Taylor Garner's AFL exile will continue after North Melbourne handed down further sanctions for his involvement in a Sydney bar fight.

Garner has been ruled out of AFL selection for a further three weeks and agreed to spend a month working full-time away from the club.

The 25-year-old got into an altercation at a Double Bay venue during the Kangaroos' bye weekend during which a man's nose was reportedly broken.

Garner failed to notify the club of the incident and was stood down from AFL duties, missing their clash with Collingwood over the weekend.

The forward will continue to play and train with North's VFL team.

He will also make a $5000 donation to charity.

North Melbourne said in a statement that Garner had agreed to the sanctions following talks with caretaker coach Rhyce Shaw and the club's leadership group, adding that the incident remained under investigation by NSW police.

Garner was the 15th overall selection at the 2012 draft but has struggled with injuries and form, managing just 38 senior appearances.

"I'm really disappointed, it's not where we want to be," interim coach Shaw said after news of the incident broke last week.

"We've spoken about our standards and obviously he's put himself in a position where he hasn't upheld those standards."

It later emerged that Sydney midfield star Isaac Heeney had defused the incident and assisted the alleged victim.

Sydney issued a statement saying Garner had been staying with former teammate and current Swan Ryan Clarke, who had left the venue and headed home before the incident occurred.

Heeney was at the same venue with friends and witnessed the incident.