Police have released an image of a man they believe can assist with their inquiries into an incident where a man performed a lewd act in front of two children at Waratah last week.

About 3.15pm on Thursday 7 May 2015, a man approached two children, both aged 12.

Police have been told the man exposed himself and then performed a lewd act in front of the children.

The offender then fled from the area and police were contacted.

Officers from Newcastle City Local Area Command attended a short time later but could not locate the man. The children were not injured during the incident.

Investigators have obtained a CCTV image of a man they believe may be able to assist them with their inquiries.

The man in the image is described as being of Caucasian appearance and between 30 and 40 years old. He had a medium complexion, average height and slim build.

He is described as wearing a dark blue hooded jacket, white shorts, heavy shoes, a red peaked baseball cap and was carrying a blue bag.

Anyone with information is urged to contact Crime Stoppers on 1 800 333 000.

Callers to Crime Stoppers can remain anonymous and a reward of up to $1000 is payable for information which leads to an arrest.