An Australian tourist is facing the death penalty for allegedly smuggling cocaine into Bali, police said today.

Lamar Aaron Ahchee, 43, was allegedly caught receiving a 1.8 kilos (4 lb) shipment of drugs at a villa on the Indonesian holiday island on May 22.

Police swooped in on the rented property near Kuta Beach following a tip-off about two drug parcels arriving on the island from overseas.

They detained the Aussie, who could face a firing squad for violating the country's harsh anti-drugs laws.

Bali police chief Daniel Adityajaya said in a press conference on Monday: 'He is suspected of importing or distributing class 1 narcotics. He is threatened with the death penalty or life imprisonment.'

Police said the drugs had arrived from England on May 21. Through X-ray scans, customs officials discovered the cocaine disguised as Lindor Lindt chocolates.

Lamar allegedly paid two couriers 300,000 IDR (around 20 USD) each to transport the contraband to his villa, with police allowing the handoff to take place under surveillance. He was arrested upon receiving the narcotics.

Cops also found a digital scale, plastic, and a phone in his room.

The Australian Department of Foreign Affairs and Trade confirmed it was extending consular assistance to a detained Australian in Bali.

A department spokesman said: 'Owing to our privacy obligations we are unable to provide further comment.'

Indonesia has some of the world's most punishing anti-drug laws.

In 2005, the Bali Nine, a drug smuggling gang from Australia, were arrested for attempting to smuggle 8.3 kilogrammes (18 lb) of heroin out of Indonesia.

Ringleaders Andrew Chan and Myuran Sukumaran were executed by firing squad in April 2015 despite international pleas for clemency. One died in prison from cancer and the only female in the group had been released earlier.

The remaining five members returned home on December 15.

(1 USD = 16,254 IDR)