Last month Racing 92 president Jacky Lorenzetti told Midi Olympique magazine that "unfortunately, Ali Williams will soon be dismissed".
Investigators alleged that the 35-year-old Williams was the one who bought the cocaine, although he tested negative for the drug. They alleged that O'Connor tested positive, but was not involved in the deal.
Williams has already issued a public apology on social media.
I made a big mistake and I’m sorry. I feel I've let down our beloved rugby community. I will face the consequences. Thanks 4 all the support
Ali Williams arrives at the Paris courthouse. Photo / AP
His arrest was the second off-field incident to impact the club in recent months. Former All Black Dan Carter was also arrested for drink-driving in Paris in February.
Over the course of his career Williams picked up 77 caps for the All Blacks, including an appearance as a replacement in the home 2011 World Cup final win over France.
The 35-year-old has not been immune to controversy in the past. In 2007 while in South Africa with club side Blues he was sent home for "disciplinary problems", including late-night drinking sessions and a lack of respect for team management.
Williams took a measure of responsibility for his actions but added: "It takes two to tango."
