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The AFL has conceded a controversial free kick paid in the final quarter of Essendon's upset win against Collingwood on Friday night was a mistake.

The AFL has admitted a crucial mistake was made by an umpire that resulted in a Collingwood goal in the last quarter of the Magpies' clash against Essendon.

A free kick was paid against Essendon's Will Snelling for a dangerous tackle on Collingwood's Callum Brown.

The Magpies young gun then converted the set-shot that cut the Bombers' lead to 16 points and continued Collingwood's comeback from a 27-point three-quarter-time deficit.

Essendon eventually held off the Magpies' late charge to win by 15 points, but the decision sparked controversy during Friday night's contest.

"The AFL confirms the dangerous tackle free kick was unwarranted," an AFL spokesperson said.

"In the umpire's view, he thought one arm was pinned and the tackle was excessive which left the head in a vulnerable position."