The CEO of the North Richmond health service that houses the safe injecting room has resigned.

Demos Krouskos was stood down on Friday after two of the workers at the neighbouring drug counselling service were arrested over alleged drug trafficking.

He opted to quit the role on Tuesday.

Premier Daniel Andrews said it was the right decision.

“I thank him for his service, but it’s appropriate that he has stood down,” the Premier said.

PIC: 9 News