Mark "Bomber" Thompson has been arrested and released without charge following an investigation into alleged drug trafficking.
A Port Melbourne property belonging to Thompson, 54, was raided by police on Friday and he was arrested on Tuesday.
Footage provided to Seven News shows police storming through the door of the Rouse Street address on Friday morning.
A neighbour told the Herald Sun another man had been living at the property over the past few months and Thompson was seen only occasionally.
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He said he had seen numerous visitors coming and going during the final two weeks of last year.
Another neighbour said all police "took out was a few evidence bags. They didn't look big".
Thompson captained Essendon to a premiership as a player and won two as coach of Geelong.