AFL COMMUNITY engagement manager Jason Mifsud has apologised to Melbourne utility Aaron Davey over the false allegations concerning Demons coach Mark Neeld's treatment of indigenous players.

The pair sat down for mediation talks on Tuesday morning in the fallout from the Grant Thomas blog scandal.

The Melbourne utility had been desperate to meet with the league's community engagement manager last week after reports linking him to the erroneous information Mifsud supplied to the former St Kilda coach.

Melbourne and the AFL issued a joint statement on Tuesday afternoon.

“I have apologised to Aaron personally for the distress this has caused him and his family and I am pleased we were able to fully discuss the matter,” Mifsud said.

“Clearly there was a misunderstanding following my conversation with Jason a couple of weeks ago. Jason is a man I trust and respect and I look forward to working with him in the future,” Davey said.

Despite offering his resignation in the middle of this latest controversy Mifsud says he's not going anywhere.

“Following this morning’s meeting with Aaron, I am now looking forward to continuing in my role with the AFL,” he said.

Melbourne and the league both now consider the matter closed - although it still remains unclear how Mifsud came to the conclusions he did.

“Importantly, this has provided the opportunity to bring this matter to a close for Aaron, Mark Neeld and the club," Melbourne CEO Cameron Schwab said.

The allegations made by Thomas in his ninemsn website column about Melbourne coach Mark Neeld's treatment of indigenous players were proven to
be false.

Davey was adamant he had no such conversation with Mifsud.

Mifsud fell under further scrutiny after failing to meet with Davey at the height of the scandal last week.

He had taken time away from league headquarters after being forced to apologise at a news conference with AFL chief executive Andrew Demetriou.

MattThompson is a reporter for AFL Media. You can follow him on twitter @MattThompsonAFL