Melbourne and North Melbourne have laughed off a suggestion from former Hawthorn president Jeff Kennett that the two AFL clubs should merge.

Kennett, whose Hawks rejected a merger with Melbourne in 1996, said a merger would be in the interests of the Demons and Kangaroos.

“As we move to the end of this media contract, which is five years, we ought to be giving consideration to having a strong Melbourne brand and I think that is a combination of the North Melbourne and the Melbourne clubs,” Kennett told 3AW.

“I think that it would make a lot of sense – both are in need of a lot of support.”

Kennett added a merger would give the two clubs plenty of advantages.

“North Melbourne as a geographic base is not as strong as it used to be. The city is bigger (and) the state is bigger,” he said.

“The two clubs together, strong, good at their game, good at administration – I think it’s the way of the future.”

The Demons and Kangaroos predictably were not keen to add to the story, with one club official saying “we won’t dignify it with a response”.

Kangaroos chairman James Brayshaw also announced on Thursday that the club’s debt reduction campaign had raised more than $1 million.

The Demons have also worked hard to eliminate their hefty financial debt.