The accusation surrounds an incident involving former Scotland international Donachie and 19-year-old defender Remie Streete after Monday's 2-0 Under-21s defeat at Sunderland.

Just hours after news of the alleged incident, Newcastle confirmed the 62-year-old, who had a brief spell as Millwall manager, had stepped down from his position.

A club statement said: "Newcastle United can confirm that Willie Donachie has resigned from his position as reserve team manager with immediate effect. The club will be making no further comment."

The former Manchester City player's exit came as first-team manager Alan Pardew prepared to sit down with owner Mike Ashley in a bid to get the troubled club back on track.

Pardew will send his depleted team into Premier League battle at Chelsea on Saturday after another tumultuous week on Tyneside.

The Magpies sold star midfielder Yohan Cabaye to Paris Saint-Germain last week without replacing him before the transfer window shut.

They then lost 3-0 at home to hated local rivals Sunderland and witnessed the departure of controversial director of football Joe Kinnear inside six turbulent days.