MELBOURNE has secured a $1 million lifeline from the AFL, but has not been able to obtain the other $1 million it is seeking from its other powerful partner, the Melbourne Cricket Club.

Sources yesterday confirmed that the AFL Commission agreed on Monday to provide Melbourne with $1 million in the annual special distribution.

Without the special assistance package, the club would struggle to stay afloat.

But the commission made its funding conditional on the MCC effectively matching its contribution in a complicated proposal.

It is understood the MCC committee rejected the proposal at a meeting on Tuesday night.

MCC secretary Steven Gough would not comment on the MCC committee's meeting, but said discussions were continuing between the AFL and the MCC about how to financially assist the Demons.

Melbourne has argued that it needs the $2 million for 2009, having received about $1 million from the AFL this year and a further $500,000 from the MCC.

Under the present arrangements, the cash-strapped Demons were to receive just $250,000 from the league in 2009 — an amount that, given the club's financial issues and its poor onfield performances, is well under what it believes it needs to stay viable.

The funding proposal, however, involves far more than just the huge sums of money, which are considered crucial to the survival of the nation's oldest football club.

The deal is complicated by Melbourne's plans for the Olympic Park precinct and its push into Casey Fields at Cranbourne.

Melbourne had received $500,000 from the MCC for the past three years, but its deal with the cricket club expires at the end of 2008 — hence the AFL's attempt to broker a deal in which both parties contribute heavily to the Demons, with the MCC upping the ante, doubling its outlay to the football club that was once formally joined to the MCC.

An AFL spokesman said last night the AFL was in "ongoing discussions with the MCC" over the funding of Melbourne, but would not comment further.

While securing the funding is crucial for the survival of the Demons, the club's cash flow has been better than usual at this time of year, boosted by the significant increase in membership since the Jim Stynes-led administration and board assumed control and warned that the club's existence was at stake.

Melbourne has more than 15,000 members — about 4000 to 5000 more than it would usually have at this time of year.

Meanwhile, the Western Bulldogs last night reported a profit of $641,242 for 2008.