Kenny-Dowall stood down by Roosters

Sydney Roosters veteran Shaun Kenny-Dowall has been stood down indefinitely by the NRL club after being charged with drug possession, potentially jeopardising a seven-figure contract with Newcastle.

Kenny-Dowall was allegedly caught with cocaine at a Sydney nightclub, with the utility back due to appear in court on June 21.

In a statement on Monday night, the Sydney Roosters said Kenny-Dowall would be stood down indefinitely "pending the conclusion of the club's internal investigation and consultation with the club's board of directors".

The 29-year-old New Zealand international was searched at the Ivy nightclub on George Street about 1am last Friday and officers allegedly found 0.46 grams of the drug in a small resealable bag.

Kenny-Dowall is believed to have offered to take a hair follicle test to prove he hasn't used cocaine.

The charge may well have put at risk a potential move to Newcastle.

It was reported on Fox Sports' NRL 360 on Monday night that he had been offered a four-year deal by the Knights, worth around $1.2 million, but that had been withdrawn.

He has played well over 200 first-grade games for the Roosters since making his debut in 2007.