The Sydney Roosters are investigating allegations that controversial recruit Todd Carney set fire to a man's pants, causing burns to his buttocks.

The NRL club issued a statement on Tuesday saying they were conducting a "thorough investigation" and would report the findings to the NRL.

The Seven Network reported on Monday that Carney, who has a history of off-field behaviour issues, and a companion deliberately set a man's pants alight at Airlie Beach in North Queensland on New Year's eve.

The incident has been described as a prank gone wrong, as the man was treated at hospital for burns.

"While no complaint has been made to the Queensland police the club has a responsibility to complete a thorough investigation," said the Roosters statement.

Carney is due to return to the NRL with the Sydney Roosters in 2010 after spending a season in the Cairns district competition following his sacking from the Canberra Raiders.

The 23-year-old was axed by the Raiders and deregistered by the NRL in 2008 following a series of alcohol-fuelled indiscretions.

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