Basketball ACT informed Basketball NSW yesterday that Canberra's men's and women's teams, the Gunners and the Nationals, have withdrawn from Waratah League, effective immediately.

It is understood both games will be recorded as Newcastle victories by forfeit, but Basketball NSW officials were still considering their options late yesterday.

Hunters women's coach Martin McLean, who is also the basketball manager at Newcastle Basketball, was disappointed when he became aware of Canberra's decision yesterday but understood their predicament.

"It's disappointing because you put all the work in at training to prepare to play a game each weekend. You want to play games, that's where you get to compete and where you get better, and that's why you play," McLean said.

"But in saying that, we fully understand and appreciate why Canberra have made their decision and we sympathise with their situation."

Newcastle's next scheduled games are away against Hills Hornets next Saturday. The Hunters' next games scheduled for Broadmeadow are against Central Coast Crusaders on September 12.