The Roos were informed on Tuesday night that the club had been demoted to HRU Divisional Rugby due to a series of lopsided scorelines and issues with player numbers and player strength.

Initially, the battling club vowed to fight the decision. They notified NSW Country Rugby Union and considered taking legal action.

"We considered going through the courts but didn't want a costly drawn-out process like [fellow Newcastle club] Easts did a decade ago. In the end they lost," Lake Macquarie treasurer Mark Mitchell said.

However, after a meeting with the HRU board on Thursday night, Lake Macquarie have switched their attention to rebuilding the club in the second tier.

Divisional Rugby consists of seven one-team clubs. The Roos have 63 registered players.

"We have spoken to the players and they are willing to drop back to divisional," treasurer Mark Mitchell said.

"Ideally we will field two teams but it will depend how many players we have left. Today we have had 10 players wanting to transfer to Premier clubs. We will see how the dust settles over the weekend and work out our numbers"

HRU vice president Nicola Roche said the union would work with the Roos.

"Sadly, for numerous reasons, many outside the club's control, there's just not the numbers to continue on at a Premier rugby standard," Roche said. "There's so much history and passion in the club, it's heartbreaking, but we're committed to helping them transition and rebuild."

Meanwhile, premiership-winning skipper Steve Lamont returns for Hamilton against Nelson Bay at Strong Oval.

Lamont played the past two seasons with the Hunter Wildfires but has scaled back his rugby commitments to spend more time with his young family.

The wholehearted back-rower played second grade last round, but has been promoted after Jock Armstrong called it quits this week.

"Jock has retired, the poor bugger," Hamilton coach Marty Berry said. "His body is not handling it. He hadn't played for a few years. It's a shame because he was enjoying his rugby.

"Steve comes in. There was no pressure from us. We were just waiting until he was ready to go.

"He is a different type of player to Jock. Both are quality players.

"The respect Steve has from the boys. His leadership alone will be valuable."

Tute Grant and Nikau McGregor have been linked to Nelson Bay but have not been cleared after departing the Hunter Wildfires this week.

In other matches, Wanderers will defend the Tony Wansey Shield against Southern Beaches at Ernie Calland Oval.

At Townson Oval, Merewether and Maitland will do battle for the Steve Lane Cup.

University, who were scheduled to meet Lake Macquarie, and Singleton have the bye.