Dallaglio has been charged with bringing the game into disrepute and with taking recreational drugs during the British Lions tour to South Africa in 1997.
This follows a 10-week investigation by an independent panel, under the chairmanship of the High Court judge Sir John Kay, which looked into newspaper reports that Dallaglio claimed he took ecstasy and cocaine at an end- of-tour party after the British Lions had won the three-match series against the Springboks.
Dallaglio will be called before a hearing within the next 10 days or two weeks. It is understood that he will continue training with the rest of the 35-strong England squad as they prepare for the World Cup in the autumn.
Dallaglio said last night: "I have been informed that the RFU will be holding a disciplinary hearing. I categorically deny the charges, but I will be co-operating fully with the panel and look forward to bringing the matter to a conclusion as soon as possible. At the request of the RFU I will be making no further comment until the hearing has been concluded."
If found guilty of the charges Dallaglio's career could be over.
Sport, page 28