West Coast and Fremantle will be able to complete their two-week quarantine period at home when they return to Western Australia sometime in July.

WA Premier Mark McGowan announced the news on Tuesday in a major development for the Eagles, Dockers and the AFL in general that paves the way for a Western Derby.

West Coast coach Adam Simpson warned the AFL last week that if the WA Government ruled players and staff must quarantine in hotels then the Eagles would not stay in Queensland beyond round five.

This change means both clubs will be able to train and play matches during that quarantine period, although McGowan said the rules on them would be "very strict".

"When some of the (West Coast and Fremantle) team members came back (from interstate) prior to the season commencing, they were required to home quarantine," McGowan said.

"That will be the restriction that is placed upon them.

"They'll be able to train subject to certain very strict conditions, and the Eagles and Dockers, within the 14 days' quarantine, will be able to play one another in a derby if that's possible."

Both WA clubs offered to undergo daily COVID-19 tests – they are currently being tested twice weekly – among other strict measures in order to avoid hotel quarantine.

It is the latest positive for football out west, with McGowan giving the green light on Monday for sporting grounds to be at 50 per cent capacity from this Saturday, then 100 per cent from July 18.

Eagles chief executive Trevor Nisbett has also revealed plans are well advanced for a WA quarantine hub that would deliver a stretch of home matches for the two local clubs.

McGowan confirmed visiting Victorian clubs would be able to play against one another if they were sent to compete in the WA hub.

An AFL announcement on the next block of matches after round five is imminent.