The charges related to matters alleged to have occurred in the 1970s, the statement says.

"The priest concerned and I have agreed that he stand aside from ministry,” Bishop Wright said.

“We are unable to comment further on this matter at this time, other than to say again that we have and will continue to co-operate with NSW Police in their investigations and that we have confidence in our criminal justice system to deal properly with this matter in due course."

Through Zimmerman Services, the Diocese continues to offer professional and confidential healing and support services to those who have been affected by child sexual abuse committed by members of the Diocese.

Should anyone have any concerns for children or wish to access our healing and support services; please contact Zimmerman Services during office hours on 4979 1390.

A Catholic priest has been granted conditional bail to appear in Forster Local Court on April 5 after he was arrested and charged with three counts of indecent assault on a male.

The 76-year-old man, who remains a current serving priest within the Maitland/Newcastle Catholic Diocese, was arrested earlier today, Thursday, March 23 and taken to Waratah Police Station.

The arrest follows the Commonwealth government’s 2013 establishment of a Royal Commission into institutional child sexual abuse.

The commission began hearing evidence from witnesses and victims and in 2014 a 46-year-old man came forward claiming he had been sexually abused by two priests and another man.

The boy was aged between nine and 12-years at the time the alleged abuse occurred.

The alleged assaults on the boy are believed to have occurred between 1979 and 1980 on the Mid North Coast.

Following inquiries detectives from Manning Great Lakes Local Area Command arrested the Newcastle man at about noon.