Transgender footballer Hannah Mouncey is planning legal action against the AFL over its gender diversity policy, after announcing plans to play in Canberra’s first grade women’s competition.

The 31-year-old announced on social media she no longer has a desire to play at AFLW level and is seeking an opportunity to play locally, after previously playing for Ainslie.

The former Australian men’s handball representative says the updated gender diversity guidelines mean she is free to play second grade in Canberra.

But to play first grade in the Territory means following the AFL’s new processes, which state testosterone levels to have been at or below a certain level for at least two years prior.