Melbourne will receive two first-round draft selections as compensation for former No.1 draft pick Tom Scully's defection to Greater Western Sydney.

Scully, Phil Davis, Callan Ward and Rhys Palmer have accepted offers to join 2012 debutants GWS.

The AFL on Tuesday announced that the four players' former clubs - Melbourne, Adelaide, the Western Bulldogs and Fremantle - had been notified of their compensation draft picks in return for having an uncontracted player elect to join the Giants.

The AFL's 18th team have the right to select one uncontracted player from each club - excluding first-year team Gold Coast - with a compensation package to be determined in one of five bands.

Compensation is based primarily on the new contract offer to the player, the AFL said.

The Demons will receive the top line of compensation, which means a first-round selection and a mid-first round pick.

The Bulldogs get a first-round selection for Ward and Adelaide will receive the same for Davis.

Palmer's deal with the Giants has been rated a third-level compensation and Fremantle will receive an end-of-first-round selection.

The AFL said the Demons were given more compensation than Adelaide or the Bulldogs because of the "significant differential" in Scully's massive contract compared to those offered to Ward and Davis by GWS.

Scully, 20, is set to earn a reported $6 million over six years at GWS.

"It was therefore determined that the compensation package for Melbourne should be in the highest band," the AFL said in a statement.

Western Bulldogs chief executive Simon Garlick said the AFL's announcement was a blow.

"While the Western Bulldogs are disappointed that the club has only been awarded the second band of AFL compensation for Callan Ward, we note the AFL's advice that there was a significant differential in the contract offer to Scully, to that of Ward," Garlick said.

"Given the club faces no further threat from these extraordinary expansion rules, the Bulldogs look forward to tackling our pre-season with vigour and getting on with season 2012 and beyond."

Melbourne's first-round selection can be activated in any of the 2012, 2013, 2014 or 2015 Draft Selection Meetings.

The selection will be immediately placed behind the round-one selection of Melbourne in that particular season. If the Demons earn the right for selection 12, for example, the compensation selection would be No.13.

Should Melbourne wish to activate the selection in the 2011 AFL Draft during the expansion-period drafts, the selection would be placed at the end of round one, the AFL said.

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