The NRL will spend Tuesday investigating its latest off-field scandal after a reported breach of the COVID procedures.
First reported by Phil Rothfield for The Daily Telegraph, Dugan was seen in a social media post over the weekend out at a restaurant with friends.
NRL players have been in Level 3 lockdown for some days now, with players first barred from attending any areas within the Eastern Suburbs of Sydney from Thursday, June 17.
That order then spread to the rest of Sydney, with the entire competition now on lockdown along with the rest of Sydney.
Last night, all players were moved onto the highest level of COVID restrictions, which the NRL used in resuming the competition last year.
Dugan, who has three tries from eight games this season, but has been relegated to reserve grade in recent weeks, is reportedly being isolated from his teammates. It has all been reported the Sharks have informed the NRL integrity unity.
The centre is yet to score in New South Wales Cup, while he has made just five tackle busts in his two games. The 31-year-old, who is yet to secure a contract for 2022, was likely to play for Newtown again this weekend until the competition was postponed for two weeks.
Chairman of the Australian Rugby League Commission Peter V'Landys told Channel Nine's Sunday Footy Show over the weekend that the NRL would be proceeding as normal despite the greater Sydney region going into a snap two-week lockdown as COVID stats worsen in the city.
With the NRL already treading thin ice around other state governments though as they travel through closed borders to keep the season running, any breach by players of the COVID restrictions could prove catastrophic.
While the Roosters have already moved their game with the Storm to Newcastle, three matches are still set to be played in Sydney this weekend. It's expected more information will be available regarding the status of this weekend's games on Tuesday evening following a meeting of NRL executives.
The Cronulla Sharks have now confirmed the matter is being worked through by both Dugan and the NRL integrity unit.
In a statement, the Sharks stated Dugan was not in breach of any New South Wales government public health orders.
Dugan will undergo a mandatory 14-day isolation period, but has returned a negative COVID test.