Cronulla Sharks chairman Damian Keogh has handed in his resignation after being arrested in Sydney for allegedly possessing a drug, thought to be cocaine.

“Given the challenging personal nature of this matter, Damian is not currently available for comment,” the Sharks said in a statement on Saturday.

Police say they searched a 55-year-old man at a licensed premises on Bourke Street in Woolloomooloo about 7.50pm on Friday.

A small resealable bag containing a quantity of white powder believed to be cocaine was allegedly found during the search.

The man has been arrested and issued with a field court attendance notice for possessing a prohibited drug.

He is due to face Downing Centre Local Court on June 30.

Cronulla chief executive Lyall Gorman will hold a media conference in Sydney on Saturday.