Former Wallaby George Smith has been arrested in Japan, according to his Japanese rugby team's owner Suntory.

The Yomiuri Shimbun daily reported on Wednesday that a drunken Smith was arrested after refusing to pay a 10,000 yen (A$126) cab fare and fleeing, then punching the taxi driver.

The Yomiuri says the driver chased him multiple times shortly after midnight on December 31.

The 37-year-old had denied the allegations, the paper added.

Advertisement

Smith, having won 111 caps for the Wallabies, plays for Tokyo-based Suntory Sungoliath.

Local police were not immediately available for comment but Suntory Holdings Ltd confirmed his arrest.

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

"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 Brumbies and, since retiring from international rugby in 2010, has played in France, England and Japan.

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