The Newcastle Knights have stood by a decision to sack young forward Dane Tilse despite police electing not to lay charges following a drunken rampage by the NRL team's players in the NSW town of Bathurst.

Police were left with little option but to back off when a woman who alleged she was indecently assaulted by a Newcastle player decided not to pursue the matter.

Early last week - less than 48 hours after the incident took place - the club fined 12 players including Tilse, who subsequently had his contract terminated.

"We are obviously pleased that the police will be laying no charges," Newcastle chief executive Ken Conway said.

"I would like to re-affirm, however, that the decision to terminate the contract of Dane Tilse was made totally irrespective of any police investigation.

"In reaching its decision, the board had regard to the standard only of whether or not the conduct in question was contrary and prejudicial to the club and the NRL.

"In terminating his contract, the club took the position that regardless of the view of the police, the behaviour of Dane was outside the bounds of what our club will tolerate.

"As we have stated previously, we will offer Dane support as he looks to rebuild his future.

"Our club would also like to once again apologise to the students of Charles Sturt University for any duress they have experienced both before and since last Sunday."

The NRL also voiced its support for the Knights' actions.

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