A male coach has been stood down by private Auckland all-girls school St Cuthbert's after a teenaged member of his team stripped down to her underwear and fishnet stockings in the middle of a busy Rotorua street.

It is understood the incident was part of a "sports initiation" and took place under the supervision of the coach, who was contracted by St Cuthbert's College to coach a senior girls' football team.

Principal Lynda Reid said the Epsom school had launched a full investigation into the incident, which she called a "very serious lapse of judgement".