Donald, coach of Australia's women's team since 2016, has endured a turbulent few months after making headlines last October when he controversially dropped Dally M medallist Olivia Kernick from his Pacific Championships squad.
But AAP understands a separate incident has been the subject of an internal NRL investigation involving the league's human resources department since that tournament.
The matter has reached as far as the desk of Australian Rugby League chairman Peter V'landys and will be finalised as soon as next week when a final call will be made on Donald's future.
It comes as Jillaroos players prepare for a one-off Test in Las Vegas in March, having been added to the card of the NRL's season-opening US showpiece event.
Sources have told AAP the issue relates to Donald allegedly using an expletive to refer to a journalist in front of players, while airing frustrations about coverage late last year.
At least one player shared details of the interaction more widely, before the NRL was made aware and started its own investigation.
The saga has been complicated by the fact Donald has two separate contracts at the NRL, as both the national coach and general manager of women's player pathways.
As such, the issue has been handled by human resources rather than the NRL's integrity unit.
Any potential sanction will only directly impact Donald's role as Jillaroos coach.
The incident, coming after Donald's snub of Kernick from Australia's Pacific Championships squad raised eyebrows at league HQ and among pundits, has increased pressure on the coach.
Kernick was snubbed by Donald for the Pacific Championships despite winning the NRLW Dally M medal. (Mark Evans/AAP PHOTOS)
Both Donald and the NRL declined to comment when contacted by AAP.
Donald was due to lead a Jillaroos camp on the Gold Coast last weekend ahead of the team's historic Test match against England in Las Vegas on March 1.
But that camp was called off at the last minute without any clear explanation.
Donald has been a long-time employee of the NRL, having started work as a game development manager in Queensland in 2002.
He has since become one of the most prominent and influential drivers in the women's space, while coaching the Jillaroos through their most dominant era.
His time in charge of the national team has also come at a time where the women's game has risen rapidly in Australia and turned professional at the top level.
Donald was at the helm for Australia's World Cup wins in 2017 and 2022, and at one stage took the Jillaroos on a seven-year, 15-match unbeaten run before his sole loss to New Zealand in 2023.
The veteran coach had eyed off taking the Jillaroos to another title in 2026, and was lauded for his pathways work during last year's inaugural Vegas venture.
But his decision to drop incumbent Kernick was widely criticised, days after she was named the NRLW's best player.
Donald then claimed part of his decision was because Kernick came off the bench in State of Origin, when she had in fact started for NSW.
Australia went through the Pacific Championships undefeated, flogging Papua New Guinea 84-0 before recording 14-0 and 24-4 victories over New Zealand.
It was during the final week of that camp when Donald was understood to have made the alleged comment that prompted the ongoing investigation.
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