CHANNEL Seven's news ratings have plunged since the network revealed drug use at a Melbourne football club.

The station is now seeking a peace deal with the AFL as the issue boiled over, with some players vowing to shun Seven's reporters.

Seven's Melbourne news ratings plunged 20 per cent on the first weeknight since it broadcast details of the private medical records of two AFL players.

On Monday Seven's news drew 316,000 viewers in Melbourne, a drop of 80,000 viewers on the previous Monday's figure.

Media analyst Steve Allen of Fusion Strategy said that if the channel's news ratings stayed low, there was no question that "Seven is on the nose with the public over its AFL drug story".

Most of Seven's lost viewers migrated to the Nine network's news, whose ratings increased by 69,000.

The ratings figures come as signs of a peace deal between Seven and AFL players emerged last night.

Seven's Melbourne head Ian Johnson, who was due to hold crisis talks with the network's lawyers over their stand on the story early today, told The Age: "I've spoken to (AFL chief executive) Andrew Demetriou and I've spoken to (AFL Players Association head) Brendon Gale and we are keen to have this resolved."

Johnson said Seven would not apologise for broadcasting the story but planned to release a conciliatory statement today.

"I hate that this has become an issue in AFL football," Johnson said. "I go out of my way to help every AFL club where I can. But we also have a news department and unfortunately this (story) has caused a lot of angst."

Scoffing at the notion that the current breakdown in relations would affect Seven's TV rights deal with the AFL, which runs until 2011, Johnson said of the mooted players' Brownlow Medal night boycott: "That would be to their detriment. It's their night."

Collingwood captain Nathan Buckley yesterday declined to film an interview with Seven that would have been aired in Friday night's broadcast of the Magpies' clash with Adelaide, and Adelaide player Brett Burton refused to answer questions from Channel Seven.

Demetriou said last night he supported the players' stand against Seven.

"Players in general have had a gutful. The level of scrutiny by the media … has become over the top and it has become an explosion."

Seven's Melbourne news director, Steve Carey, defended the story, which was obtained by paying a woman around $3000 for the records that she said she found in a gutter outside a medical clinic.

On Monday police charged two people with theft.

Police, who have raided Seven's offices, have not ruled out charging a Seven employee. Carey said: "The person who rang the network with information about the documents wanted anonymity in our story but she did not ask for protection (of her confidentiality), nor was it given by us".

Reporter Dylan Howard, who broke the story, said: "It is important that how the story was done does not become the story. The important thing is that the abhorrent issue of drugs in sport is aired."

With DAVID ROOD