The AFL will develop a state league-based knockout competition next year, including teams from the second-tier VFL, SANFL and WAFL.

AFL development manager David Matthews said 16 teams would be invited from the various state leagues across the country to play in a knockout competition from 2011.

All state leagues have declared an interest in being part of the new competition, which will also provide a broader shop window for possible AFL draftees.

"From 2011, our traditional state league clubs ... will be able to pit themselves against other state league players, with four victories required in a straight knockout contest to claim the title," Matthews said.

A final schedule and other key competition details are still being determined, in consultation with the fixtures for each state league.

They are expected to be released early in the new year, along with prizemoney and sponsorship details.

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