Newcastle forward David Klemmer has resumed training with the Knights after his disciplinary matter was resolved.

Newcastle have declared David Klemmer will see out his NRL contract at the Knights after he was allowed to return to training.

Klemmer was on Friday handed a suspended fine for verbally abusing a trainer when he refused to be substituted off late in their loss to Canterbury last week.

The resolution came after lengthy meetings on Friday, where the Knights said Klemmer had shown contrition over the matter.

It means Klemmer will be able to return for Newcastle as soon as next week against Brisbane.

He has been stood down from Sunday's match against Wests Tigers as part of his punishment.

The public drama came in the same week Klemmer was linked to a mid-season move to Parramatta, while rumours also emanated out of Newcastle that the club were shopping him around.

But new football boss Peter Parr insisted that Klemmer will see out the final year of his deal, and that Klemmer had never shown any interest in the Eels approach.

"Yes (he will see out his contract)," Parr said.

"The main problem the club had with his behaviour was not following the instructions ... from the coach.

"He admitted his error in that.

"It was a long discussion but we now have resolution on that and are quite happy to have the episode behind us."

Parr also insisted that there would not be lingering issues at the club between Klemmer and experienced trainer Hayden Knowles.

Notably, the Knights will also change their procedures around complaints over on-field behaviour to avoid future dramas.

Parr conceded that incidents such as the Klemmer one were common in rugby league, but given a complaint had been made to human resources a process had to be followed.

"There was no other way forward," Parr said.

"From today we have changed the process where any of these types of incidents would come to me now as director of football.

"And I will then decide if they have to go to HR or the CEO."

Meanwhile, Newcastle faced fresh dramas on Friday, with claims a lower-grade official made a racial slur against a player.

The incident is not linked to the Klemmer scenario and is still being investigated.

"I know there has been an allegation made and there is a process in place around that," Parr said.

"Because of the different parties involved you have to be careful with that and ensure the process is followed in a really appropriate matter."