Australia's Olympic chief John Coates says athletes must be made aware of the "vicious cycle" caffeine can lead to following the AOC's ban on strong prescription sedatives such as Stilnox.
But while World Anti Doping Agency (WADA) president John Fahey backs the Australian Olympic Committee's (AOC) stance he says caffeine, which was removed from the prohibited list in 2004, will remain a legal substance.
The ban on sedatives such as Stilnox, Mogadon and Rohypnol for the London Games follows revelations by retired swimmer Grant Hackett that he was heavily reliant on sleeping pills at the end of his illustrious career.
Hackett said the drug was used by swimmers during the Beijing Olympics in 2008 to help them have a good night's rest while competing under hectic schedules.
AOC president Coates, who said he was shocked by Hackett's admission and his claims of widespread use of sedatives, implemented the ban on the advice of team medical director Dr Peter Baquie.
"We think it's clear enough with all of the evidence now about the dangers of the drug in terms of addiction and hallucinations and dependence that justify the stand we've taken," Coates said on Tuesday.
Coates said the AOC will now focus on highlighting the guidelines surrounding caffeine, which, when used excessively, can lead to sleeplessness and the subsequent use of sedatives.
"We are very worried about the vicious cycle of athletes taking caffeine as a performance enhancer and needing to take a drug such as Stilnox to get to sleep," he said.
"So what we've decided to do is better emphasise those risks.
"The bigger question of whether WADA should prohibit it again is something for WADA."
Fahey, however, remains adamant that WADA will not reintroduce a ban on caffeine despite the AOC's concern.
"It was on the list and the experts decided it no longer needed to stay on the list," he told AAP on Tuesday.
"We will continue to monitor it on an annual basis but there's nothing that has indicated in recent times that caffeine should be back on the (banned) list."
Fahey faced a similar situation in 2010 when AFL player Ben Cousins was hospitalised after reacting adversely to taking post-match sleeping pills following the use of caffeine for a game-day buzz.
But amid allegations the practice was rife in the AFL, WADA didn't revise its position on caffeine.
"It's no different to what happened years ago in the case of Ben Cousins," Fahey said.
"Those individual substances are legal. Caffeine is legal, Stilnox is legal with a prescription.
"What the AOC seem to be responding to is where there is irresponsible behaviour on the part of those taking those substances.
"I think the AOC is adopting a very responsible attitude but they're not matters that come near the anti-doping code. It's not a matter for WADA."
A new section dealing with "sleep and relaxation strategies" will be included in the revised medical manual for Australia's Olympic athletes.
Officials will be able to search athletes' rooms if they are suspected of using prescription sedatives with athletes facing possible expulsion.
The federal government has backed the AOC's decision.
"It's motivated by the welfare of athletes and I support that decision," Sport Minister Kate Lundy said.