DISGRACED Olympic kayaker Nathan Baggaley's competitive career appears doomed after he was charged overnight with possession and supply of ecstacy.

Baggaley, already under suspension from his sport after testing positive to steroids, was pulled over by police on the Gold Coast last night and today appeared in Southport Magistrate's Court.

The two-time world champion and dual Olympian was charged with possession of dangerous drugs, possession of a dangerous drug of an amount exceeding schedule three, supplying a dangerous drug and receiving or possessing property obtained from trafficking or supplying drugs elsewhere other than Queensland.

Baggaley, 31, and his co-accused Kane Thomas Battese, 19, both of Mermaid Waters on the Gold Coast, were today granted bail in the Southport Magistrates Court. Police allege Baggaley and Battese drove a car to Byron Bay, in northern NSW, yesterday to collect a quantity of tablets.

Police also allege they found a drug laboratory in his home at Mermaid Waters.

Baggaley was released today on bail, but if he is found guilty of the charges he will face automatic life suspension from the sport.

Baggaley, who is also an elite surf lifesaver, was suspended in 2005 for two years after testing positive to the steroids stanozolol and methandienone.

On appeal, the Court of Arbitration for Sport reduced the sentence to 15 months because of mitigating circumstances. Baggaley said he unknowingly ingested the banned substances from a bottle of orange juice in his family's fridge. The suspension was due to expire this month.

The latest charges effectively ruin Baggaley's bid to make the Olympic Games in Beijing next year. Baggaley won a silver medal in kayaking at the Athens Olympics.

Speaking after Baggaley's arrest on drugs charges, fellow kayaker Clint Robinson said he was shocked by the news.

"The first emotion I had was extreme sadness for Nathan himself, because I've never known Nathan... to be like that," he told ABC radio today.

"He was just always one of those blokes who was damn hard to beat if I got on the water against him or with him, and a real hard trainer, and it was a very big shock to me."