Green’s Dictionary of Slang

of a woman, to associate with and choose one’s close friends from homosexual men.

1994		I. Welsh ‘A Smart Cunt’ in Acid House 222: This burd wis really fag-hagging ays oot.
2000		N. Griffiths Grits 29: A couple uv gay blokes oo work in thuh Arts Centre [...] must be gettin fag-hagged out by er.