Demetriou said the League was contacted several weeks ago about the interview, which was broadcast on Tuesday night.
"They said, would it be OK to do that interview, and I advised Paul Little, and then, of course, our people advised the chief operating officer, that there was no issue about breaching the agreement," Demetriou told reporters on Wednesday.
"He conducted a pretty straight up and down interview that appeared on The Hangar last night and we saw no issue with it," he said.
In the interview Hird did not discuss any details of the ongoing ASADA supplements inquiry.
Demetriou said he had not spoken to Hird since the coach was suspended for 12 months over his part in Essendon's supplements program in 2012.
In the Fox Footy interview, the suspended coach insisted he wouldn't be a distraction when he returns to the club after his suspension ends in August.
Hird reiterated he would leave Mark Thompson to lead the team into any finals campaign.
"This season, it's pretty clear to Bomber and myself that Bomber's the coach for 2014 and once season 2014 finishes in terms of our last game, then I'll take over as head coach," Hird said.
