The AFL Grand Final Parade has been scrapped after Lord Mayor Sally Capp confirmed that the event would not go ahead and instead will be replaced for a smaller COVID safe event.

Capp said they [government] "look forward to working closely with the AFL to assist delivering an event" and "encourages people to come into the municipality to celebrate last weekend in September."

According to The Herald Sun, the premiership cup will be presented at a COVID safe event inside Marvel stadium to a restricted number of people.

MELBOURNE, AUSTRALIA - SEPTEMBER 26: Brownlow medallist Adam Cooney of the Bulldogs waves to fans during the 2008 AFL Grand Final parade held at the Treasury Building September 26, 2008 in Melbourne, Australia. (Photo by Mark Dadswell/Getty Images)

Players and coaches will circle around the oval and the proposed event will have up to 20,000 people attending.

However, the formal proposal of the event has not yet been submitted to the Department of Health or state government for approval.

A state government spokesperson told the Herald Sun they plan to "deliver fans a grand final parade in the lead up to the to the AFL grand final."

"We will continue to work closely with the state government on the appropriate health advice, ensuring health and safety of the community continues to be a priority," they said.

The public holiday parade has been ruled out, which in recent years has had crowds of up to 150,000 people attending, however this year's event will exclude thousands of people from the celebration.

MELBOURNE, AUSTRALIA - SEPTEMBER 29: Alex Rance of the Tigers and Damien Hardwick, coach of the Tigers wave to the crowd during the 2017 AFL Grand Final Parade ahead of the Grand Final between the Adelaide Crows and the Richmond Tigers, on September 29, 2017 in Melbourne, Australia. (Photo by Scott Barbour/Getty Images)

The state government spokesperson said "the first grand final parade is an iconic Melbourne event but we know due to covid there may be some changes to the usual program, depending on restrictions and public health advice."

The AFL said they will continue to manage the covid pandemic but are unsure at what the event will look like and where it will be located.

AFL legend Leigh Mathews expressed his disappointment for the cancelation on 3AW and said the event is "an experience that [he] really values."

“I think it’s really part of the grand final experience that I look back on with great joy,” he said.