Sacked North Queensland prop Mitchell Sargent was "over the moon" to be given a second chance in the NRL after signing a three-year deal with Newcastle.

Banished from Townsville for failing an in-house drug test to cocaine two weeks ago, Sargent on Thursday signed a deal to join the Knights from 2007 and was re-registered by the NRL because of the stringent future testing guidelines and counselling outlined in his contract.

A visibly relieved and emotional Sargent said he looked forward to repaying the faith shown in him by the Knights and making the most of his second chance.

"I'm actually over the moon to be given this second chance," he said.

"To be playing with guys like Joey Johns, Danny Buderus and Steve Simpson (it is) definitely going to be a great three years and I'm totally committed to the Newcastle Knights and giving them my best footy.

"(After) making that huge mistake and getting a second chance ... I definitely want to obviously win back the support of my fans and the broader community.

"When it just all sort of finished I was really worried I didn't know where my future was held, so to get a call to play with the Newcastle Knights was definitely a great call to have."

Knights chief executive Ken Conway said the club felt Sargent deserved a second chance as their own recreational drug policy prefers rehabilitation and counselling over a zero tolerance approach to drugs.

"We believe in rehabilitation and counselling in the first instances and on that basis we're happy to give Mitchell a second chance," said Conway, adding the player would be subjected to a deliberate testing program rather than the usual random in-house tests.

"I'm not going to go into how often because I don't want the player to know how often ... but basically it will be a specifically targeted program as opposed to our normal internal policy which is random.

"We can test him anytime, anywhere and he is happy with that."

Mitchell's manager Steve Robinson confirmed the Knights had secured his client on a good deal as there were few options available to the young prop - particularly in Australia.

"We had some interest from the UK, but we just felt Mitchell had a lot to offer the NRL if he got an opportunity," said Robinson.

"He wanted to get that opportunity to show that indiscretion he made was a once-off."

Conway said Country Origin player Sargent was a good signing for the club, with prop Craig Smith to retire at the end of the year, and was welcomed by the club's sponsors, future coach Brian Smith and the leadership group.

He said the decision wasn't hypocritical after sacking young prop Dane Tilse last year for harassing women after a preseason match in Bathurst.

"The facts of the two cases are fundamentally different and we treat each case on their facts," said Conway.

"We consulted widely (on Sargent), the discussions started off within the club and we consulted with Brian (Smith), we consulted with sponsors and we consulted with the leadership group.

"Everyone was positive, but conditionally positive.

Sargent has not returned to Townsville since being cut by the club and has had limited contact with the Cowboys players.

"He has been pretty well shut away, only his closest mates have had contact with him," said Robinson.

But the manager said since the Knights deal started to eventuate earlier this week Sargent had regained his enthusiasm for the game and resumed training.

"I would not say he is over it, it would leave a bit of a scar for his whole life," said Robinson.

"He has to rise above it, push it to the back."

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