Australian rugby star George Smith has been arrested in Japan amid reports he drunkenly punched a taxi driver who chased him after he refused to pay a £65 fare.

Smith, who has 111 caps for the Wallabies and played for London Wasps, was arrested in Japan, where he's playing for Tokyo-based Suntory Sungoliath.

The Yomiuri Shimbun daily, quoting sources connected with the police investigation, said a drunken Smith was accused of refusing to pay a 10,000 yen (£65.60) taxi bill and fleeing.

He's then said to have punched the taxi driver who chased him multiple times shortly after midnight on New Year's Eve.

Smith denied the allegations, the Yomiuri said.

Billy Vunipola of Saracens is tackled by George Smith (
Image:
Getty)

Police were not available for comment but Suntory Holdings Ltd, who own Smith's club, confirmed his arrest in a statement.

"It is true that George Smith, under contract to our rugby team, has been arrested," the company said.

"We issue a heartfelt apology to the victim, as well as other related people, as well as to the many people who have worried and been caused problems by this."

Flanker Smith made his professional debut in 2000 with the ACT Brumbies and since retiring from international rugby in 2010 has played in France, England and Japan.

He played for London Wasps between 2015 and 2016.

Smith returned to Super Rugby in Australia last season for a stint with Queensland Reds.