The career of former England captain Lawrence Dallaglio hangs in the balance after he was charged yesterday by the Rugby Football Union (RFU) with bringing the game into disrepute and with taking recreational drugs during the Lions' tour of South Africa in 1997.

Dallaglio will appear later this month before a three-man RFU disciplinary panel chaired by the high court judge Sir Oliver Popplewell, who will be assisted by two of the union's council members: John Spencer, who represents Yorkshire, and Gloucestershire's Keith Plain.

Dallaglio resigned as England captain in May after allegations that he had taken and dealt in drugs were published by the News of the World. They were vehemently denied by the wing-forward, but the RFU set up an independent inquiry panel, chaired by judge Sir John Kay, to decide whether Dallaglio had a case to answer.

The panel's 10-week investigation culminated yesterday with a detailed report which was considered by the RFU's management board. On the recommendation of the union's disciplinary officer, Roy Manock, Dallaglio was charged with bringing the game into disrepute after admitting taking recreational drugs as a teenager; but, in addition, he will also have to prove that his claims to the newspaper reporters that he had taken ecstasy and snorted cocaine after the Lions' series in South Africa amounted to nothing more than drink-fuelled braggadocio.

The RFU's decision to set up a hearing for Dallaglio, who rejoined the England squad last month after missing the five-week training camp in Australia earlier this summer, does not imply his guilt or innocence. It is the equivalent of magistrates deciding there is a case to be answered in the crown court.

Dallaglio said last night that he would contest the charges. "I categorically deny the accusations but I will be co-operating with the panel and look forward to bringing the matter to a conclusion as quickly as possible. At the request of the RFU I will not be making any more statements until the hearing has been concluded."

No date has been set for the hearing, but it is expected to begin within a fortnight, probably next week, and conclude before August 31st when the England coach, Clive Woodward, has to submit his 30-man squad for the World Cup which kicks off on October 1st.

If Dallaglio is found guilty of one or both of the charges, the disciplinary panel has the authority to decide his punishment: a fine or a suspension. The catch-all disrepute count would probably incur a fine and, possibly, a backdated ban. But the consequences for the Wasps player if the allegations that he took recreational drugs in South Africa are proved are potentially far more serious.