"RLWC 2017 has been made aware of an incident that occurred in the Italian team's camp in Cairns," World Cup organisers said in a statement.
"CEO Andrew Hill confirmed that the matter has been referred to the integrity unit for investigation and the Italian officials are cooperating with the organising committee.
"It is inappropriate for RLWC 2017 to make any further comment until a report has been completed."
Adding further to the incident the Italian rugby league federation have released a statement regarding the incident.
"It has been reported in social media and news that two members from the Italian Rugby League World Cup squad were involved in an altercation on Sunday 29 October at an establishment in Cairns," Italian rugby league federation said in a statement.
"As a result of an internal review conducted on Monday 30 October by the Federazione Italian Rugby League (FIRL) of the incident, both players involved will appear before an internal review committee within the next 24hrs about their conduct during this incident.
"FIRL understands the importance of ensuring that players are not to engage in conduct that is detrimental or damaging to Rugby League or the RLWC.
"Both players involved understand their obligations to the RLWC and the acceptable behaviour in public.
"The Federazione Italiana Rugby League have cooperated with the RLWC organisers about the incident and are satisfied that all measures have been taken to ensure compliance with the RLWC Integrity Unit and the player code of conduct."