Manly are almost certain to stand down John Hopoate from his junior coaching role after a report police had expressed concern about the controversial figure.
A member of the organised crime unit met the NRL club to express their reservations about Hopoate's involvement with junior players, Fairfax reported.
Sea Eagles officials met police three weeks ago when they were told the 42-year-old should not be coaching the club's under-18 side.
"I pointed out that the commissioner of police had excluded Hopoate from the casino in July and that's a decision not taken lightly," detective inspector Wayne Walpole told Fairfax.
The Sea Eagles were already under pressure to stand down Hopoate after they failed to gain NRL approval when he coached the side last weekend in a 42-18 thumping at the hands of Newcastle.
The club is expected to receive a breach notice and significant fine.
The former Australian and NSW representative was appointed the club's SG Ball coach last year however the NRL sought to block the move, citing his troubled on-field history highlighted by a record total of 45 weeks suspended.
The NSWRL has stood by the Sea Eagles through the entire saga, saying he was a fit and proper person because he had completed the relevant coaching certificates and background check.
The two governing bodies have been at loggerheads for three months over Hopoate's role at Manly.
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