The undated video went viral on social media on Wednesday and appears to show Martin grope the woman in what appears to be a strip club.
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The woman appears to be sitting on the lap of another man when Martin walks up from behind and appears to grab her breast.
Addressing the incident later on Wednesday, an AFL spokesperson reportedly told the Herald Sun: “We have become aware of a video posted on social media. We are seeking further information.”
Richmond coach Damien Hardwick was asked about the video on Wednesday afternoon at a press conference.
Seven News reporter Tom Browne asked: “There’s just an old video of what looks like from 2017 of Dusty online on Twitter this afternoon, I think at a Richmond event. Are you aware of that, have you seen that video?”
Hardwick responded: “No. I’m not too sure.”
Catharine Lumby, the NRL's former gender adviser, told the Herald Sun: “It’s well known within strip clubs you’re not allowed to touch women and men and therefore you have to abide by the rules, in the same way as behind the shop counter you don’t abuse people behind the cash register.
“You don’t grab anyone’s body in any context without permission, ever.”
Addressing the furore on Thursday, AFL great Garry Lyon described it as a 'disaster' for the AFL on the eve of the finals.
“That would be, for all sorts of the reasons, the AFL’s worst nightmare on the launch of this finals series,” Lyon said.
“From a behaviour point of view, to the focus that they want, to the circus this will be unfolding now in Brisbane with Dusty returning to footy having been out for a long, long time. Now, like it or not, this is going to be the focus.
“Timing-wise, not that that matters, it’s a disaster for the AFL.”
Dustin Martin returns for AFL finals
Martin, 31, hasn't played since suffering a hamstring strain against West Coast on July 3.
But Hardwick declared on Wednesday that the Tigers star is a certainty to face Brisbane in the first week of the AFL finals on Thursday night.
The coach also insisted Shai Bolton would run onto the Gabba for the elimination final despite the small forward missing the side's last two training sessions for personal reasons.
Jason Castagna has been relegated, while Martin's inclusion comes at the expense of retiring triple-premiership player Shane Edwards.
Bolton was still on a plane to Brisbane when Hardwick addressed media at the Gabba on Wednesday.
"Everything's okay ... he's a certainty to play," he said of Bolton.
And the coach said Martin, who would likely play forward of the ball, would join him despite being "probably about 80 per cent".
"He's a certain starter; he's turned the corner the last three weeks," Hardwick said.
"Who is 100 per cent at this stage of the season? Eighty per cent Dustin Martin is pretty formidable, I'd still hate to play on him.
"What impact we get we're not too sure. Anything we get from him on a spiritual level will be very, very important and everything on field will be a bonus for us."
After missing last year's finals series, Hardwick admitted to some nostalgia on returning to the scene of their most recent premiership in 2020.
"It's hard not to. It's just a great place to play footy and we've played some great games of footy here against the Lions," he said.
"We've got a bit of a rivalry ... we've both had indifferent seasons at different stages but both know our best footy is more than capable."
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