Four top Australian Football League (AFL) players who were investigated in relation to an alleged sexual assault at a hotel in Melbourne earlier this year will not be charged, police have said.

After a "thorough investigation and based on legal advice" police would not proceed with criminal charges due to "insufficient evidence", police said in a statement.

Four Sydney Swans players - Isaac Heeney, James Jordon, Chad Warner and Nick Blakey, who now plays for North Melbourne - had been suspended for the rest of the season over the incident in August.

The men previously denied wrongdoing but apologised for breaching club standards by inviting women back to the hotel after a game and drinking.

Australian media reported that three women, understood to be adult entertainers, had alleged inappropriate touching during the incident at the Pullman Hotel and are reportedly looking into civil action.

"Due to the ongoing civil matter, Victoria Police is unable to make further comment," police said in a statement on Friday.

A fifth player, Riley Bice, who was also suspended by the club, had already been cleared by police.

Heeney welcomed the police announcement, saying the past three months had been "incredibly difficult for my family, [my fiancee] Steffie and those close to me".

"To my family and friends, your love and loyalty has meant more than words can do justice," he continued.