Newcastle's NRL season is in tatters before a ball has been kicked after Chris Houston became the second player from the club to be charged during the off-season with alleged drug dealing.

The Knights' worst fears were realised on Monday following reports in December that more players at the club could be involved in an alleged drug ring after Houston's former flatmate Danny Wicks was charged.

Houston was stood down indefinitely by the club once reports of the charges emerged.

"Newcastle Knights player Chris Houston has been stood down immediately and indefinitely following reports he was charged this afternoon on drug-related allegations," a Knights statement said.

"The Newcastle Knights will not be making any comment until further notice."

NSW police said a 25-year-old man would appear in Newcastle Local Court on April 13 charged with the alleged supply of ecstasy and cocaine on the NSW central coast.

He will face three charges of supplying ecstasy and one of supplying cocaine.

"About 10.30am today, officers attached to Strike Force Welham served court attendance notices on a 25-year-old Kotara man via his legal representative," the police statement said.

Strike Force Welham investigators also charged former Knight Wicks and three others with drug supply on December 16.

Wicks fell on his sword on December 23, terminating his $200,000-a-year contract with three years to run and declaring he would fight to clear his name.

His next court appearance is scheduled for March 31.

Wicks and Houston arrived at the Knights together from St George Illawarra at the end of 2007, recruited by coach Brian Smith.

Houston was contracted until the end of 2012.

He was close to playing State of Origin football last season when called up as 18th man by NSW for game three of the series.

The loss of two key forwards, and a serious hamstring injury to captain and linchpin Kurt Gidley, leaves Newcastle's NRL premiership hopes in ruins with their season to kick off on March 13 against the Bulldogs at ANZ Stadium.

SportsAlive spokesman Gerard Daffy said rumours about the Knights had affected betting markets for months.

"Wooden spoon (betting) has been temporarily on hold because there's been rumours floating around that there might have been more than one player and obviously this is two," he told AAP.

"We had them at $26 (to win the premiership) and obviously since this first happened, about 10 or 12 weeks ago now, no-one has wanted to back them.

"But with (Houston) gone now, $34 to win."

The news comes at a bad time for the NRL with the season less than two weeks away after the league had enjoyed a relatively scandal-free off-season and bumper trial crowds.

Last year's pre-season was rocked by allegations of sexual assault against Manly fullback Brett Stewart, who was removed from the league's flagship advertisement.

NRL chief executive David Gallop declined to comment on the latest off-field incident.

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