Key Points:

Melbourne made good on a threat to sack New Zealand Maori representative Arana Taumata with the league bad boy shown the door from his fourth National Rugby League club in as many years following a drunken altercation.

A talented five-eighth, Taumata was released from the club following a "physical altercation with another male" in the early hours of Saturday morning.

Club chief executive Brian Waldron said police were investigating the incident, which occurred in the city CBD.

Rising stars Will Chambers and Dane Nielsen were out with Taumata when the altercation took place and face an array of penalties including anger management sessions, alcohol education, and explaining their behaviour to club sponsors.

Taumata, 20, had already been marched by Brisbane in 2006 and the Sydney Roosters in 2007 for discipline breaches and the Bulldogs last year after he allegedly broke another man's jaw in an off-field incident.

When signed by the Storm he was told he would be given one chance, according to Waldron.

"Arana's come to the club with the understanding that he's had one opportunity and unfortunately he has transgressed and left us with no choice," he said.

"We're disappointed for a number of reasons, certainly from an image of the club point of view but Arana and the boys have let us and themselves down.

"Arana's got some issues to deal with personally, we've tried to help him through those but he understands that when you make choices there are consequences."

Waldron said the club and the players worked hard to maintain a strong, positive reputation in Melbourne.

"I'll be damned if we're going to let individuals destroy what we've done here and that's why we've been so strong with this issue and we will protect the image of the game and the Storm to the detriment of individuals if need be."

Taumata was thought to be settling in well at Melbourne, with coach Craig Bellamy impressed by his pre-season efforts and considering promoting him to a play-making role to allow super-star Greg Inglis to move to the centres.

Waldron said the club was helping him with his "issues".

"You'd like to think as a 20-year-old you can overcome your shortcomings.