The pair were involved in a fight outside the Orient Hotel at the Rocks in Sydney on Wednesday night.

Peters was fined and issued with an infringement notice by police.   

“The Manly Warringah Sea Eagles have now completed an investigation into an incident that occurred on Wednesday 13 September involving two members of the football department,” Manly said in a statement.

“After concluding the investigation both staff members have been sanctioned by the club due to breaches of the club’s code of conduct.

“The club advises that NRL assistant coach Willie Peters will be leaving the club with immediate effect."

Sea Eagles Owner & Chairman Scott Penn said:

“The Sea Eagles will not tolerate misconduct and expect all employees to represent the club at the highest standard.

"All employees agree to the club’s code of conduct and know what is expected of them. We must uphold these standards and will not accept any avoidable breach of them.”

Peters joined the Sea Eagles at the end of last season from the Wests Tigers.