Swans players Riley Bice, Nick Blakey, Isaac Heeney, James Jordon and Chad Warner will not be considered for selection again this year in a bombshell ruling from the club.
The players have been linked to an ongoing police investigation into sexual assault allegations at East Melbourne's Pullman Hotel, with no charges laid.
The AFL has let Sydney handle the internal punishments, wary of not potentially jeopardising police enquiries.
"The AFL is supportive of the club's sanctions," a Swans statement read.
"We respect there is an ongoing investigation by Victoria Police and the actions we have taken today are independent of this."
It comes after AFL chief executive Andrew Dillon on Tuesday released a statement calling for more respect around the allegations.
Swans chief executive Matthew Pavlich and club chairman Andrew Pridham will face the media at 12pm on Wednesday.
Dillon said the allegations and the conduct of the Swans players were "deeply concerning".
"While the matter remains under police investigation, it raises broader issues for our game and our responsibilities as a sport," Dillon said.
"The woman who made the report to police is entitled to privacy and care, and that should be respected."
Initially, the players were expected to be sidelined for at least two games while police continued their investigations.
Heeney, Warner and Blakey are among Sydney's most important players, while Bice and Jordon have played key roles during the past two seasons.
The first three will almost certainly be in All-Australian contention, with the release of the squad delayed due to the controversy.
The Swans will host North Melbourne at the SCG on Sunday with a barely recognisable team to the one that beat Essendon last week.
Sydney have locked up second spot on the ladder and are guaranteed two home finals.
1800 RESPECT (1800 737 732)
National Sexual Abuse and Redress Support Service 1800 211 028