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Perth had hoped to host a traditional-style parade ahead of hosting its first AFL grand final but the AFL has opted against it.

The AFL has scrapped its traditional grand final parade for a second consecutive year in favour of a less risky ticketed event in Perth.

Perth had hoped to host a parade through its CBD as part of its build-up to hosting the grand final at Optus Stadium for the first time.

But the AFL decided it was too risky given the current COVID-19 outbreaks gripping Australia.

It's also been reported the AFL was concerned a street parade could potentially become the target of a terrorist attack.

Instead, the AFL is in the final stages of organising a free ticketed event where the two teams and the premiership cup will be presented in front of fans.

RAC Arena, Langley Park or the Supreme Court Gardens are the most likely options for the event to be held.

"Over the course of the season and the 204 matches that have so far been completed, the AFL has based all its conservative decision-making on minimising risk and ensuring the health and wellbeing of the players, staff and wider community is paramount," the AFL said in a statement.

"The AFL has made the decision to not hold a traditional street parade this year.

"We have decided that given the tight time constraints and our continued conservative approach to dealing with the pandemic that it would be a more appropriate option to give fans a free ticketed event."