The Swedish research adds to existing evidence on the link between heading the ball and brain injury.
Dr Sara Imarisio, of Alzheimer's Research UK, said there was "still more to do to fully understand exactly what's driving this increased risk".
Most of the players affected by dementia played high-level football during the 1950s and 60s, when footballs were heavier and made of leather. It could be the potential risks from head impacts "are offset by having good physical fitness", study author Björn Pasternak says, which may also explain the lower Parkinson's risk.
"My take home message is protect your brain by both exercising and avoiding head injury and impacts," she said.
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