The head of an Aboriginal children's organisation in New South Wales has been charged with producing and disseminating child pornography.

Steve Larkins is the chief executive of the Hunter Aboriginal Children's Services, which provides foster care and support for Indigenous families in the region.

The 44-year-old man was arrested this week after police searched the organisation's headquarters in the Newcastle suburb of Tighes Hill.

They also searched his home at nearby Mayfield.

Police seized several computer and communication devices.

Larkins has been charged with producing, disseminating or possessing child pornography, and has been stood down from his job until the police investigation is completed.

In a statement, the Department of Community Services said the charges are a shock and are being taken extremely seriously.

New South Wales Family and Community Services Minister, Pru Goward, is seeking further police action on the matter and police have not ruled out laying more charges.

Larkins has been granted bail and will face court again next month.