The 62-year-old was arrested by Lake Macquarie detectives at Silverwater correctional facility on Monday morning.

Police allege Orkopoulos sexually and indecently assaulted two boys known to him on separate occasions in the 1990s in Lake Macquarie and on the NSW mid-north coast.

Orkopoulos has been charged with 15 offences including aggravated indecent assault of a person under 16 years of age, committing an act of indecency with a person under 16 years, aggravated sexual assault and causing a child aged under 14 to participate in child prostitution.

He was refused bail to appear at Newcastle Local Court via audio-visual link on Tuesday.

NSW Police Superintendent Danny Sullivan on Monday said the two victims had shown great bravery to approach authorities and were being supported.

He didn't rule out additional charges being laid.

"We're very thankful for the courage that's been shown by the people in relation to this," Supt Sullivan told reporters.

"These matters are very delicate ... when a victim comes forward, we're very conscious of the trauma and distress coming forward may cause them."

The former NSW Labor MP spent 11-and-a-half years in jail after he was convicted of 30 child sex, drug and child porn offences and was granted parole in December 2019.

Orkopoulos was arrested in January for allegedly setting up an Instagram account and not telling police within the required seven days.

He had his parole revoked in February after Corrective Services NSW officers told police he used the mobile phone of a fellow resident at the Malabar halfway house where he lives.

His charges related to his alleged breach of parole conditions were scheduled to return to court on July 1.

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Orkopolous had applied for parole before, in 2017 and January 2018, but had been rejected both times.

In 2018, Corrections NSW confirmed it had accepted a recommendation from the Serious Offenders Review Council to allow Mr Orkopolous to apply for day leave.

The former NSW Aboriginal Affairs Minister and Swansea MP in Labor's Morris Iemma government was convicted of 30 child sex and drug offences in 2008.

His crimes were committed between 1995 and 2006 and involved the grooming of three young boys with drugs and alcohol in exchange for sex.

He was sentenced to a maximum of 13 years and 8 months.

When he was sentenced, Judge Ralph Coolahan said Orkopoulos used his position of authority and power to win the trust of his victims and introduced one to heroin, an act that he described as "a very serious offence".

"His conduct was premeditated, predatory and manipulative with far-reaching impacts," Judge Coolahan said at the time.

with AAP