In Melbourne for meetings and to attend Saturday's grand final, Rees told AFL chief executive Andrew Demetriou there was room for the proposed team in western Sydney.
The league is planning to introduce a western Sydney side into the AFL as the league's 18th team in 2012.
Rees said the proposed location for the second team in Blacktown was in the electorate next to his.
"So, I'm acutely aware of what the local reaction to it would be," Rees said.
"The AFL has a long-term strategy, that's a good thing..
"I made it clear there was enough room in Sydney for another team and we want our kids to have the opportunity to play as many different sports as they can."
Rees tipped Geelong to beat Hawthorn in Saturday's Toyota AFL Grand Final.
"If I manage to get there tomorrow, I'm looking forward to it," he said.
Rees replaced Morris Iemma earlier this month after the latter resigned.
