Rick Stone has been sacked as head coach of NRL side Newcastle Knights, with club legend Danny Buderus taking temporary charge.

Stone has paid the price for the Knights' miserable run of form of 12 defeats in their last 14 matches.

"We thank Rick for his efforts and loyalty over a long period of time and while these decisions are never easy, it was made in the best interests of the club," chief executive Matt Gidley said in a statement.

"The club will now undertake a formal review process of our entire football operations, of which the playing group are a key part, and all have the opportunity to demonstrate over the next seven weeks why they should retain their position."

Former Leeds Rhinos hooker Buderus, who holds the appearance record at the Knights, has been named as caretaker coach, but is not believed to be in the running to be given the job permanently.

Newcastle are 14th in the NRL, only two points above last-placed West Tigers.