Mehl, who made a racist remark at October 29's junior AGM at Kiama, decided it was best for both himself and the South Coast Rugby League Competition moving forward that he stand down.

This decision by Mehl, who has been in the role three years, was made following a meeting with newly elected Group Seven president Scott McLaurin on Friday.

"I wish to inform you that Peter Mehl has retired as operations manager of Group Seven Rugby League," McLaurin said in a statement.

"Peter has worked tirelessly over the last three years.

"In this time he has been very effective in getting the group's finances from a precariously low position to the secure financial position we are now in.

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"His contribution to the overall management of the group's operation has been very effective and cannot be overlooked.

"Peter's guidance and support for the new clubs was tremendous, in what can be a difficult introduction to rugby league club management.

"On behalf of Group Seven, I would like to wish Peter all the best in his retirement."

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McLaurin, who admits the meeting Mehl was very positive - which included the pair talking for more than an hour about the competition going forward - said the process to find Mehl's replacement would start in the coming weeks.

In the meantime, NSWRL will assist with the running of Group Seven Rugby League.