AFL South Coast is set to retain a presence in Sydney AFL, but the Illawarra Lions are leaving Sydney to rejoin the South Coast competition in 2015.

The Lions will adopt their former name Wollongong Lions after deciding to walk away from the Sydney AFL competition, following nine seasons in the elite Premier Division from 2005 and last season in the second-tier First Division.

The Lions struggled in Sydney and never made the Premier Division play-offs, while last season they finished eighth in First Division.

But the Lions' charter of giving talented players a pathway to the higher level Sydney comps won't be lost in 2015, with a new AFL South Coast (AFLSC) backed entity set to at least join the Sydney under-19s comp.

AFLSC board member Michael Dobie is heading the development of the new entity charged with continuing the region's pathway to the higher standard Sydney AFL.

Dobie and Wollongong Lions president Mick Marning agree the Lions model in Sydney wasn't sustainable, but the new entity would be fully administered by AFLSC and supported by its member clubs.

With a working title South Coast Thunder, the new entity plans to draw on the talent in the Illawarra Storm's three junior rep teams (under 12s, 14s, 16s) plus the skills-based Illawarra development squad and the senior AFLSC clubs to form a united push back into Sydney.

The Lions under 19s were a late withdrawal from Sydney AFL in 2014, but the AFLSC board is pushing for an under-19s team in the Sydney competition for 2015.

Sydney AFL wants any senior Thunder team to return in 2016, but Dobie says with the right sponsorship and administrative backing they could return to replace the Lions in 2015.

The Thunder have the support of the Swans and GWS Giants' Academy programs, with Dobie saying that having AFL South Coast form the new franchise for Sydney was the right move.

"We have to do it right and build the new entity from within AFL South Coast, not outside it, and while there's a lot of work ahead, already it has been well received," Dobie said.

The Thunder's senior application to join Sydney AFL will be filed on Friday with Dobie to make a presentation about the 19s and seniors bid in Sydney next week.

It is highly likely the 19s proposal will be accepted, while Dobie says a decision on any senior Thunder team in Sydney in 2015 will be made by the end of the month.

Meanwhile, Marning was elected as new Wollongong Lions president at the club's annual meeting on Wednesday night and says the move back to AFL South Coast was a necessary one.

"The last few years have been a real struggle," Marning said.

"The players haven't enjoyed it, we've battled on the field and there hasn't been the support off it. The move back to South Coast will be a real lift for everyone."

The Lions' return to the South Coast comp is expected to be formally endorsed at AFL South Coast's AGM on November 26.

"A lot of the old Lions who have been away for a few years bringing up families and committed with work want to get involved again and the mood and attitude at the club is really good right now," Marning said.

"We have some time yet before nominations have to be in and once everyone knows we are back in South Coast, I'm sure the playing strength will be there."