The incident is being investigated by the Penrith Junior League, however the Panthers cleared Watene-Zelezniak of any wrongdoing.
"Penrith Panthers is aware of an incident involving Panthers player Dallin Watene-Zelezniak, which occurred at a junior rugby league fixture in St Clair on Saturday morning," the club said on Sunday.
"Watene-Zelezniak was volunteering as a sideline official at the time and contacted Panthers Executive General Manager Phil Gould immediately following the incident."
"Panthers can confirm Watene-Zelezniak was not the instigator of the incident."
The 21-year-old made his debut for the Kiwis in 2016, and scored a try for the Panthers yesterday.