The white powder allegedly found inside Perth teenager Jamie Murphy's bumbag is not drugs and is most likely paracetamol, Bali police sources have told news.com.au.
While police have yet to make any official statement about the laboratory results on the 1.46 grams of white powder, sources have told news.com.au that it appears to be pain medication, most likely paracetamol.
Sources have also confirmed that blood and urine tests on Murphy have tested negative for drugs.
However Kuta police chief, Wayan Sumara, said he had yet to receive an official report from the police forensics laboratory.
And he added that Murphy had not been named as a suspect. He is being held at the police station pending the official laboratory results.
"I cannot give any explanation before I get the official report from the forensic laboratory. We are still waiting for the report," Commissioner Sumara told news.com.au.
But two police sources have confirmed the negative test results to news.com.au.
Once the official results are released it means that Murphy would be freed and allowed to leave, having spent two nights in police custody at the Kuta police station.
Police have previously said if the powder is negative for drugs that Murphy would not be charged with any offence.
He has been kept in a room of the station, with a couch to sleep on, and not locked up in a cell since his arrest about 1am on Tuesday morning.
Australian Consular officials have visited Murphy this morning. Two of his friends arrived, bringing food and drinks and an Australian expat in Bali brought him some Vegemite sandwiches and fruit.
It comes as Skygardens defended itself against claims the club's security guards were involved in a set up of Murphy, releasing their own CCTV footage of the moment he was stopped for a routine search as he attempted to enter the massive Kuta club.
Bali teen's parents in mercy dash
The 18-year-old's parents, from Ellenbrook in Perth's east, left for Denpasar this morning on a mercy mission to support their son - who is yet to be charged with drug offences, but is now the subject of worldwide media attention.
Murphy, who arrived in Bali on Sunday, was arrested outside the Sky Garden nightclub in Kuta by security and handed over to a nearby police post.
"It's not mine, I haven't taken it, what are you doing, it's not mine. It's not mine," he shouted during his arrest, which was captured by Channel Nine cameras.
Murphy's family remains tight-lipped on his arrest, while the teen's friends claim he'd been set up.
Murphy is spending his second night in an office of the Kuta police station and has yet to be officially interrogated.
He now faces a nervous wait to find out if he will be named as a suspect and charged.
Two lawyers from local firm Vidhi Law Firm, who have been signed up to represent him, visited Murphy at the police station.
After the visit one of the lawyers, who did not want to give her name, said that Murphy had told her the white powder was not his and that he had not purchased it.
But police sources told News Corp Australia he admitted to buying the white powder, which is still being tested by the forensics laboratory, from a local on the street in Legian.
He was alone at the time of his arrest, about 1am, and no family has visited him at the police station. His parents left Perth Airport early this morning on a flight to Denpasar, Bali.
Police sources have confirmed the net weight of the white powder is 1.46 grams. The total weight, including the bag, is 1.69 grams.
Angry friends of Murphy claim the teenager has been set-up.
Taking to social media Ty Airey wrote, "A big f**k you to the Australian media, you can clearly see the cocaine in the security's hand BEFORE he even opened up the bag, don't drag his name through the gutter when even the video u posted has it clearly showing a set up".
Five male friends of Murphy have visited the teen, arriving at the police station at 4.30pm local time, carrying drinks and food.
They told officers on the front desk they wanted to visit their friend.
They didn't speak to waiting media other than to confirm they were his friends.
Police took them into a waiting room where they were allowed to visit the Perth teen for about 30 minutes in a room at the police station.
Teen's arrest in Bali a warning for others: Julie Bishop
Foreign Minister Julie Bishop has issued a warning to young Australians travelling overseas for schoolies after a young man was detained in Bali for being in possession of a bag of white powder.
Bishop confirmed Department of Foreign Affairs and Trade officials would be meeting with the young man today.
Officials in Canberra had also been in contact with his family in Perth.
"We're providing whatever consular support and advice we can in terms of assisting with legal representation and whatever other assistance we can provide at this stage," Bishop told the Seven Network this morning.
"Under Indonesian law people can be held for up to three days.
"They can be detained for a further three days while investigations are carried out and then a decision is made whether to charge someone or not.
"I have to take this opportunity to remind young people in particular who are going overseas for schoolies weeks or trips after the end of school to remember they are subject to the laws of the country that they're visiting.
"When you leave Australia behind, the Australian legal system, the Australian support system and you are subject to the laws of another country."
Although Murphy has been described as a "schoolie" the Western Australian Department of Education confirmed he was not a school leaver this year.
Family remain tight-lipped over teen's arrest
Supporters of Murphy have expressed shock at his arrest and say it would be totally out of character for him to be involved in drugs.
Murphy, who turned 18 only recently, is thought to have been a student at Ellenbrook Secondary College and went to Bali with mates to blow off steam after finishing Year 12.
He is said to be a highly talented soccer player and a star of his team Bayswater City Soccer Club.
He is thought to have caught the eye of A-League WA club Perth Glory and had a couple of tryouts.
The president of the Bayswater City Soccer Club Gerry Maio said Murphy was a talented player who had "a couple of trials" with Perth Glory.
"He's well and truly an athlete," he said.
Maio said Jamie was well liked and respected by his teammates.
"We are talking about a decent human being here ... a champion athlete."
At his home in the eastern Perth suburb of Ellenbrook, his family were tight-lipped, no doubt warned by Australian diplomats not to talk to the media for fear of complicating his case.
But his brother told Seven News the family is working with the Australian embassy in Indonesia and it was a "difficult time" for them.
Locals say Jamie is the younger of two brothers.
His father Brendan is thought to be an English-born chef who runs a cooking school and online business under the name Chef Explorer.
Neighbours said Jamie and his brother Liam were well known in the area and were known to like a party.
Like other young men his age, Jamie's Facebook page is full of pictures taken in happier times of lively looking parties with mates.