Authorities in NSW have placed an immediate ban on a popular craft toy after its beads were found to contain the toxic drug GHB, or fantasy.

The toy "Bindeez", which took out the 2007 Toy of the Year award at the Melbourne Toy and Hobby fair, contains hundreds of beads which can induce seizures, drowsiness or a coma, if eaten.

All Bindeez goods would be removed from sale, Minister for Fair Trading Linda Burney said today, and households with the toy were urged to remove it from any area where it could be accessed by children.