St George Illawarra player Jack de Belin has withdrawn his legal challenge to the NRL's no-fault stand down policy.

Key points: A Federal Court judge dismissed Mr de Belin's court challenge in May

A Federal Court judge dismissed Mr de Belin's court challenge in May In a joint statement, the NRL and ARLC welcomed the player's decision to withdraw the challenge

In a joint statement, the NRL and ARLC welcomed the player's decision to withdraw the challenge Mr de Belin has been charged with five serious sexual assault offences

Lawyers for the Dragon's player told the Federal Court in Sydney there was "no utility" in proceeding, as a decision would not be made before the end of the NRL season.

De Belin was appealing against a decision in June upholding the validity of the Australian Rugby League Commission's (ARLC) policy, which was introduced earlier this year.

Under the policy, players charged with a criminal offence which carries a maximum jail sentence of 11 years or more are able to be stood down until the matter has been dealt with by the courts.

The ARLC said they welcomed de Belin's decision and that they would continue to "monitor" his welfare.

"The Commission and the NRL take very seriously our responsibility to protect the reputation of the game and its stakeholders," it said in a statement.

"We have always held the view that the no-fault stand-down rule is in the best interests of the game and are pleased that the legal challenge to this rule has now been concluded."

NRL Chief Executive Todd Greenberg (left) and ARLC Chairman Peter Beattie (right) welcomed the decision. ( AAP: Joel Carrett )

The 28-year-old is accused of sexually assaulting a 19-year-old woman at a unit in Wollongong on the NSW south coast in December.

He was suspended in February after he was charged with five serious sexual assault offences.

One of the counts, aggravated sexual assault in company, carries a maximum sentence of life in prison.

He pleaded not guilty to the charges, but was stood down on full pay under the no-fault policy, before challenging it in a landmark case in the Federal Court of Australia.

In May, his court challenge dismissed after the judge defended the ARLC's decision to ban him from playing.

Federal Court Justice Melissa Perry rejected his lawyer's arguments the ban was "harsh, unfair and draconian" or that it constituted an "unlawful restraint of trade" for de Belin.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 1 minute 50 seconds 1 m 50 s ARLC Commissioner Peter Beattie said administrators were forced to act in the interests of the game.

Justice Perry said the rule was necessary to protect the legitimate interests of the ARLC and NRL to act.

"The Court accepted that nothing short of a rule precluding Mr de Belin and others charged in the future with serious offences of a similar nature from taking to the field was likely to address the clear and present danger established by the evidence," she said in a written summary of the decision.

Several off-field incidents prompted the ARLC to introduce the rule.

Mr de Belin is due to stand trial in the District Court on March 2.