The Swans will host the Giants at their 48,000-capacity home ground and Dillon insisted the 83,500-capacity Accor Stadium (Stadium Australia), which last hosted AFL in round one, 2022, was not an option.
"It's not something that we contemplated," he said.
"Sydney played all their (home) games in the SCG. It's their home final.
"I think it's the right call to play that at the Sydney Cricket Ground."
The SCG call is a stark contrast to other situations - Geelong and the Western Bulldogs have had to play finals at the MCG rather than GMHBA Stadium or Marvel Stadium respectively to maximise crowds.
Accor Stadium could only have been used for a Thursday night game as there are NRL matches on Friday and Saturday night.
Dillon also defended the decision to fixture the match on Saturday afternoon rather than in a primetime Thursday or Friday night slot.
He said a range of factors, including "crowd, attendance, viewership, venue availability" contributed to the "complex" decision - and noted Saturday afternoon was the best-attended timeslot in Sydney.
The Swans celebrate their 29-point win over the Giants at the SCG in round eight. (Dean Lewins/AAP PHOTOS)
Dillon insisted the pre-finals bye "served the competition well", but indicated a wildcard round would be looked at.
The AFL also won't rush to move more AFLW games to accommodate men's finals.
The Western Bulldogs' AFLW clash with Port Adelaide was shifted from a standalone fixture at Whitten Oval on Friday to a curtain raiser for the men's elimination final against Hawthorn at the MCG.
"We've got an AFLW fixture in place. We won't move games without serious consideration," Dillon said.
"But when we looked at where the Bulldogs men's and AFLW games were scheduled, we put ourselves in the shoes of what would the Bulldog fans want, and it was to be able to have the two games at the same venue.
"... I think what we've got is a great outcome for the fans."
Carlton's clash with Geelong on Saturday September 14 and North Melbourne's game against Port Adelaide on Friday September 20 are two AFLW games that could have potential fixture clash issues.
Last week, a spectator who threw a water bottle that hit an umpire in Carlton's loss to St Kilda received a lifetime ban, but Dillon stopped shot of saying fans were on notice.
"There's just a couple who don't behave in the right way and we're dealing with them," he said.
The AFL also announced on Monday that for the first time, the winning grand final captain will be awarded the Ron Barassi Medal.
AFL legend Barassi was a part of 10 VFL/AFL premiership sides - six as a player and two as a coach.
The Ron Barassi Medal will be presented by 1963 Geelong premiership captain Fred Wooller, the oldest living premiership captain.
Former Geelong star Steve Johnson will present the Norm Smith Medal for the player judged best on ground in the grand final.
The triple-premiership Cat won the medal in Geelong's drought-breaking grand final win in 2007.
Retired West Coast champion Josh Kennedy, who won the 2018 flag, is the premiership cup ambassador.
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