Two men have been charged for keeping a 1.5 metre crocodile in the backyard of a suburban home south of Wollongong.

The croc was located in the back shed of a home at Dapto by police conducting a search.

Sergeant Mark Scott from the Lake Illawarra Command said the owner of the house admitted it belonged to his colleague.

"National Parks and Wildlife were called and it was taken to Nowra Zoo," Sergeant Scott said.

The owner of the crocodile and home owner will face court in August charged with possessing controlled and protected fauna.