Frawley is off-contract this season, with his management originally suggesting he was worth about $750,000 a year as part of a new long-term deal. That figure has since been cut but one Victorian club has reportedly now been told Frawley, who turns 26 in September, is after a seven-year contract, two years shy of the whopping deal the Swans have given Lance Franklin.

However, Demons great Garry Lyon and former club president Paul Gardner believe Frawley should only be offered a three-year extension.

"I am not sure I would be offering anyone seven years, to be honest," Lyon said on Monday.

"Too much water can go under the bridge between now and then. I think three is a good length of contract in this day and age. If he was to stay at Melbourne, I would imagine he would still get a pretty good whack of money that would take him to 29 (years of age).

"If they were able to agree on that and it all went well in that period, you would be looking at signing another one (contract) that would keep him there as a one-club player."

Lyon said in pure financial terms, Frawley's value would be judged by the strength of the rebuilding Demons' list.

"He is in the $500,000 (a season) category, I would imagine. You would pay a bit over to move him out of there and you might pay a touch over to keep him. But I think that's around the mark," he said.

Frawley can leave for the club of his choice, even if the Demons match the offer, as he is an unrestricted free agent because he is not one of the club's 10 highest-paid players this season.

If he was to leave, the Demons would almost certainly secure a first-round compensation pick because of his age (he is in his prime) and the substantial contract he was likely to receive. That compensation selection would fall immediately behind their first-round pick, meaning – on current ladder positions – the Demons would have picks three and four.

Gardner, who was president between 2004-08, also said Frawley, an All-Australian defender in 2010, should only be offered a three-year contract despite being "a cracking bloke and great club man".

"I think the tell-tale piece in that is that he hasn't been played all that much in the backline this year. So, is he an All-Australian forward? I don't know," Gardner said.

"If he is not an All-Australian forward, and they appear to have done without him in the backline for the vast majority of the year, is he worth a seven-year deal? I would be surprised."

Frawley has made it clear he wants to play in the finals, having failed to do so in his almost eight completed seasons.

Geelong has expressed its interest in him, while Hawthorn, Richmond, Carlton and Adelaide have also been mentioned as potential suitors. The Swans could also emerge as a major player should Adam Goodes, Ryan O'Keefe and Lewis Roberts-Thomson retire and unrestricted free agent Nick Malceski leave.

Frawley has largely been deployed as a forward this season, booting 13 goals in 16 games, but Lyon has expressed concerns about his decision-making and disposal by foot and hand.

"He is, obviously, a very good one-on-one defender but if you are going to be looking at that length of deal and size of deal that is alleged to be on the table, you would probably have to offer a bit more," Lyon said.

Frawley told the Demons' website on Monday said he was doing his best to ignore the contract speculation and wanted to help the Demons improve "for the long haul".

"It gets pretty frustrating, being in the media all of the time," the 134-game veteran said.

"Being a country boy, you don't really like that stuff. The free agency stuff, it's going to be in the public eye. I'm new to it, so I'm going to cop it for a couple of years and I'm trying to focus on footy and trying to play the best footy I can."

The Demons and Frawley's agent Alex McDonald did not wish to comment.