Demetriou arrived back in Melbourne on Wednesday morning after a week and a half in the US as part of a delegation to seek information on equalisation.
He said on arrival at Melbourne Airport he had read the Australian Sports Anit-Doping Authority's interim report twice and that comments about alleged leaks made by Watson on SEN radio on Monday were off the mark.
Watson is the father of Essendon captain and 2012 Brownlow medallist Jobe Watson.
"I've always had a lot of time for Tim, I think he's a wonderful person and he's been a great ambassador and I think he's a great commentator," Demetriou said.
"I was really surprised by those comments. In short, I think they're offensive.
"To suggest the AFL Commission and people on the commission like Richard Goyder, the CEO of Wesfarmers, Chris Lynch who works for Rio Tinto, we've got a family law court judge, recently retired, in Linda Dessau, would somehow pre-determine an outcome is just offensive.
"It's completely wrong."
Demetriou said all the commissioners had been given the report after its release to the AFL on Friday, but he refused to discuss whether the commission would meet earlier than its scheduled meeting on Monday.
He said the next step in determining what would happen to the Bombers was in the hands of AFL legal counsel Andrew Dillon.
"The AFL has consistently maintained confidentiality throughout this whole process," he said.
"I'm not going to comment or speculate on what's in the newspapers.
"It would be entirely inappropriate for me to comment on the report.
"You know that all the commission have received the report and representatives from the Essendon Football Club.
"Now it's up to our general counsel Andrew Dillon to advise us on what the next steps are."
Demetriou said the still AFL hoped the matter would be resolved before the finals start next month.
"With the best intent, I think it would be appropriate if we could, but if we can't, it will be what it will be," he said.
He also said he wouldn't know where a suggestion from Triple M commentator Mark Ricciuto regarding James Hird allegedly being given an ultimatum to stand down this week came from.
Jennifer Phelan is a reporter for AFL Media. Follow her on Twitter @AFL_JenPhelan.
"I've always had a lot of time for Tim, I think he's a wonderful person and he's been a great ambassador and I think he's a great commentator," Demetriou said.
"I was really surprised by those comments. In short, I think they're offensive.
"To suggest the AFL Commission and people on the commission like Richard Goyder, the CEO of Wesfarmers, Chris Lynch who works for Rio Tinto, we've got a family law court judge, recently retired, in Linda Dessau, would somehow pre-determine an outcome is just offensive.
"It's completely wrong."
Demetriou said all the commissioners had been given the report after its release to the AFL on Friday, but he refused to discuss whether the commission would meet earlier than its scheduled meeting on Monday.
He said the next step in determining what would happen to the Bombers was in the hands of AFL legal counsel Andrew Dillon.
"The AFL has consistently maintained confidentiality throughout this whole process," he said.
"I'm not going to comment or speculate on what's in the newspapers.
"It would be entirely inappropriate for me to comment on the report.
"You know that all the commission have received the report and representatives from the Essendon Football Club.
"Now it's up to our general counsel Andrew Dillon to advise us on what the next steps are."
Demetriou said the still AFL hoped the matter would be resolved before the finals start next month.
"With the best intent, I think it would be appropriate if we could, but if we can't, it will be what it will be," he said.
He also said he wouldn't know where a suggestion from Triple M commentator Mark Ricciuto regarding James Hird allegedly being given an ultimatum to stand down this week came from.
Jennifer Phelan is a reporter for AFL Media. Follow her on Twitter @AFL_JenPhelan.
