Brown and the Eels are in the midst of a week off, having the bye during the currently ongoing Round 14.
News Corp are reporting that police were called to the pub after a 20-year-old woman reported the alleged incident to staff at the venue.
Brown was then taken to Waverley Police Station for questioning over the incident before being charged.
The report alleges that Brown and the woman are not known to each other. The NRL are yet to comment on the incident, however, the Eels released a short statement confirming the incident on Sunday morning.
"The Club has advised the NRL integrity unit as per our normal process.
"As it is a police matter, the Club will not be making further comment at this time."
NSW Police, in a statement, said Brown will face court on Wednesday.
“About 11.40pm yesterday officers attached to Eastern Suburbs PAC were called to a hotel on New South Head Rd at Double Bay following a report of sexual touching,” the statement read.
“Police arrested a 22-year-old man he was taken to Waverley Police Station where he has been charged with sexually touch another person without consent.
“He was granted bail to appear before Downing Centre Local Court on Wednesday, June 7.”
The maximum sentence in New South Wales for sexual touching is five years, so the NRL's no-fault stand-down policy for the alleged incident would not be automatically applied, however, the NRL have been clear in their view that any incident involving women would likely see the policy invoked.
Other players have been heavily impacted by the policy in recent seasons.
It's unclear whether he will be named for next weekend's fixture against the Canterbury Bulldogs after the alleged incident.