Some of the AFL's biggest names have reportedly been named in a bombshell class action submitted in the Supreme Court by North Melbourne legends Phil and Jim Krakouer.

Essendon greats Kevin Sheedy, Terry Daniher, Roger Merrett and Bill Duckworth, as well as four-time Carlton premiership player Wayne Johnston, were named in the new landmark class action, alleging historic racism of North Melbourne's Indigenous Krakouer brothers, Jim and Phil, who played together for the Roos between 1982-1989.

The class action lodged in the Victorian Supreme Court last Tuesday was submitted by Margalit Injury Lawyers, the firm behind a separate concussion class action against the AFL, and alleges the Krakouer brothers were vilified by league identities.

Sheedy, who coached Essendon for 27 years before joining GWS as its inaugural coach, and is renowned as a champion of Indigenous footballers, denied the allegations, saying his track record spoke for itself.

"I have always had the utmost respect for all First Nations players who have played our great game," the four-time AFL premiership coach told the Herald Sun on Sunday.

"My track record stands for itself in this regard, and these allegations made against me are totally inaccurate, are hurtful and I look forward to defending myself vehemently against them."

The Bombers, where Sheedy is now a director, said they would support its former coach as well as other players named in the claim.

"No individual should be subject to racism, discrimination or any form of vilification, on or off the field," an Essendon statement said.

"We must continue to learn and reflect on the past to ensure our game is free of any form of racism or discrimination.

"Throughout his career Kevin has championed the causes of First Nations footballers, never more so than through his role in the establishment of "Dreamtime at the G", a celebration of First Nations peoples and cultures.

"As a director of the club, Kevin has strenuously denied the allegation in the court action that refers to him and the club will continue to support him and the past Essendon players that are also referred to in the Court Action."

The AFL said it disagreed with the claims in the statement and would fight the class action, which is open to more than 1000 former VFL/AFL players who are Indigenous or persons of colour, and their families

"We fully acknowledge during our long history of the game there has been racism in Australian Football and that players have been marginalised, hurt or discriminated against because of their race," it read.

"And for that we have apologised and continue to apologise and will continue to act to address that harm.

"While we work through the class action, we will continue our ongoing work against racism and discrimination with our clubs, our players, our staff and our supporters to promote football environments at all levels around the country that are safe and respectful for all.

"We do not agree with the claims that the VFL/AFL has been conducted negligently over the past 47 years and we will defend those claims."

The AFL was served documentation in mid-September from the Krakouer brothers and an additional six former players, seeking compensation and procedural change within the game to stop current and future footballers from enduring the same experiences.

Margalit Injury Lawyers managing director Michel Margalit told the NIT last September it was time the AFL "properly acknowledged the trauma former players experienced and compensate them appropriately".

The writ issues in the Victorian Supreme Court in September identified negligence, with a list of breaches of duty from the league.

Ms Margalit told the National Indigenous Times at the time that any Indigenous footballers or players of colour were encouraged to contact them if needed.

The Krakouer brothers hailed from Mt Barker, 370km south-east of Perth, playing for Claremont in the WAFL before North Melbourne recruited them, where they dazzled fans across the country with their skills and footballing nous.