The AFLPA's internal review, seen by this masthead, found that the player movement mechanism has not harmed the equality of the competition and is not being used to its full potential.
AFLPA chief executive James Gallagher said free agency should create a more open player movement market and enhance competitive balance.
"Our review suggests free agency is underutilised and hasn't materially impacted competitive balance either for better or worse," Gallagher said.
The review comes as the AFL and the players' union prepare to negotiate the next pay deal, with free agency rules expected to be a key point of discussion.