Police are investigating an alleged incident in which a student from The Scots College was held down by one boy while another student rubbed his genitals near the victim's face.

The alleged incident took place at the prestigious school's Glengarry Campus in Kangaroo Valley last month.

Scots College launched a court challenge last year after Woollahra Council failed to approve its plans to convert a house into an early learning centre. Credit:Dallas Kilponen

Principal of The Scots College, Ian Lambert, confirmed an incident took place, with the school informing the authorities as well as the parents of the boys involved.

"The College immediately implemented our procedures, which included reporting to the NSW Police and speaking with the parents of the boys involved in the incident," Dr Lambert said. "Other agencies were informed and kept updated during the investigation."