A drone has been captured on CCTV footage for the first time dropping contraband into a NSW prison.

A member of the public alerted prison authorities on Monday evening to the presence of the drone near Lithgow Correctional Centre.

The following morning, officers conducted raids at the jail and found an inmate with two packages concealed in his clothing that contained 403 steroid capsules, Corrections Minister David Elliott said in a statement on Thursday.

AAP.

(Image courtesy of Lithgow Jail)