Several Sydney Swans players are being investigated over an alleged sexual assault incident in Melbourne.

Police swarmed the Pullman East Melbourne hotel, where players were staying after Sunday night's win over Essendon at the MCG.

7AFL host Tom Morris reported that three women had confronted Swans staff in the hotel foyer at 7.30am on Monday.

'This is an alleged sexual assault incident. There were three women in the foyer around 7.30am, confronting Sydney staff, including coach Dean Cox at one point who witnesses said looked shocked by the scene.

'The club is aware of details, which are believed to be sensitive and potentially very damaging to star players.'

One witness reported that two women demanded to be let back into guest rooms.

One woman was said to be 'hysterical' and 'upset' and, at one stage, ran into the hotel toilets crying before police were called, News Corp has reported.

Unconfirmed claims also circulated that a Sydney player had thrown a sex toy that struck a woman in the back of the head, causing her to fall forward and damage her teeth

Witnesses said two women approached hotel staff about 7am seeking access to a guest room, with one reportedly saying she had been ‘touched’ and felt overwhelmed while surrounded by several men. 

One woman was described as ‘hysterical’ and ‘upset’ before she ran into the hotel toilets crying, prompting staff to call police..

It comes after reports that several players were seen in the middle of a CBD street at about 2am on Monday, looking 'rattled' and yelling.

The Sydney Swans confirmed it was investigating the alleged incident.

'The Sydney Swans can confirm several players were involved in an alleged incident in Melbourne last night,' a Sydney Swans spokesperson said.

'The Swans have notified the AFL and relevant authorities and cannot provide further comment at this stage.'

Club CEO Matthew Pavlich also weighed in on the alleged incident on Monday afternoon.

'We can confirm that several players were involved in an alleged incident last night in Melbourne,' he said.

"We've identified this to the AFL, that we are working with them and also the relevant authorities on this matter.

'We're still piecing together exactly what has transpired here and have our own set of internal enquiries ongoing.

'But it's safe to say we're extremely shocked and disappointed that this has taken place and the players that have found themselves in this situation.

'We understand the level of interest in the matter and there is going to be lots of speculation.

'But given it is a police matter right now, that is all that we can say.'

Police confirmed they are investigating the alleged incident.

'Police are investigating a report of a sexual assault in East Melbourne on 17 August,' a police spokesperson told Daily Mail.

'The incident occurred at a hotel on Wellington Parade in the early hours of the morning.

'The exact circumstances are yet to be established and the investigation into the incident remains ongoing.'

Up to eight uniformed and plain-clothes officers were seen inside the hotel with clipboards and camera equipment, while others guarded the main staircase and several marked and unmarked police vehicles remained outside.

The AFL confirmed it knew about the alleged incident and said its inquiries remained 'ongoing'.