The image began circulating on social media on Monday, with a Rabbitohs statement confirming it had been taken during Mitchell's trip to Dubbo for a personal appearance on the weekend.
The picture appears to show Mitchell, one of the most recognisable personalities in rugby league, leaning over a table on which white powder has been placed.
The Rabbitohs reported the image to the integrity unit.
"The South Sydney Rabbitohs have been made aware of a photograph circulating through social media of Latrell Mitchell following a personal appearance in Dubbo on the weekend," a statement read.
"The club has informed the NRL integrity unit about the photograph. The Rabbitohs will be making no further comment at this stage."
Mitchell is currently sidelined with a foot injury sustained during the round-18 defeat of Parramatta, missing the third State of Origin match and the Rabbitohs' five games since.
He avoided surgery but will remain in a moon boot until later this month and looks unlikely to return to the field to see out the season with the 15th-placed Rabbitohs.
The image is the latest setback for a Rabbitohs side that has endured a disastrous 2024 campaign.
Having missed the 2023 finals series, the Rabbitohs fired head coach Jason Demetriou in April following a 1-6 start to the new season.
Cameron Murray, Campbell Graham, Tevita Tatola and Alex Johnston are among the stars to have spent significant time on the sidelines as the Rabbitohs have sat outside the top eight for the entire season.
Souths confirmed on Monday that Dolphins second-rower Euan Aiken will follow new coach Wayne Bennett to the club on a three-year deal from 2025.Â
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