Former North Melbourne coach Dean Laidley has been granted bail after appearing in Melbourne Magistrates Court on Monday following his arrest.

As reported by Fox Sports, the 53-year old will enter a residential rehabilitation facility.

The ex-West Coast and Kangaroos players has been in jail since May 2 over allegations he had been stalking a woman with whom he is in a financial dispute over a property with.

He reportedly phoned her 43 times on May 2, police told the court and it is also believed he reached out to her body coroporate asking for CCTV footage.

Laidley's barrister, Phil Dunn QC, said Laidley needed to be sent to a 24-hour residential rehabilitation clinic, which would be funded by the AFL Players Association.

โ€œHeโ€™s not a bad man. He needs help and heโ€™s prepared to accept this help,โ€ Mr Dunn said.

He raised serious concerns with Laidley's mental health, referencing the leaked photos of him in custody.

Following his arrest, officer said police discovered 0.3g of crystals in a plastic bag inside an adhesive bra Laidley was wearing and loose crystals believed to be methamphetamine.