Controversial AFL Europe deal with Royal Brunei Airlines will be cancelled over anti-gay laws

The Australian Football League (AFL) has called off a sponsorship deal between its affiliated league in Europe and Brunei's state airline.

In August, AFL Europe announced it had reached a deal with Royal Brunei Airlines to fly international players between Melbourne and London as part of a sponsorship arrangement.

AFL Europe receives financial support from the AFL and promotes the code in 22 European countries.

Last week, the ABC questioned the AFL about the sponsorship deal with Brunei's state airline.

The agreement came amidst a worldwide boycott campaign aimed at businesses owned by the Sultan of Brunei after he imposed harsh Sharia laws in his country.

When fully implemented in 2015, the laws will impose the death penalty by stoning for gay sex and adultery.

The AFL released a statement that said its European affiliate was unaware of Brunei's adoption of the laws.

"These laws are counter to everything the AFL stands for in regards to inclusion and diversity," the statement said.

An AFL spokesman said that after examining the issue, the league was now working with AFL Europe to wind up the agreement.

The spokesman said the sponsorship deal will be terminated "possibly within days, at most within a few weeks".