Karmichael Hunt has been arrested and charged with drug possession, after allegedly being caught by police in Brisbane.
Hunt is believed to have been arrested at 3am in Fortitiude Valley, along with another man, Queensland Police confirmed on Saturday.
The 31-year-old re-signed with Rugby Australia and the Reds just last month, on a two-year deal after making his Wallabies debut in June, playing six Tests for 2017.
RUGBY.com.au understands no other players were involved, though a 32-year-old man was charged alongside Hunt, with both issued notices to appear in court.
Hunt's case will be in court on January 29.
Rugby Australia released a statement on Saturday afternoon, saying it has begun an investigation into the incident.
"Rugby Australia has today been made aware of an incident involving Wallabies and Queensland Reds back Karmichael Hunt in Brisbane overnight," it read.
"It is understood Hunt was arrested and has subsequently been released by Queensland Police.
"Rugby Australia takes all matters relating to the off-field behaviour of its players seriously and has commenced an investigation into the incident in conjunction with the Queensland Rugby Union.
"No further comment will be made at this time."
It's not the first time Hunt has been embroiled in a drug scandal, fined $2500 after being found guilty of four counts of cocaine possession, charged as part of a wider drug ring involving a number of footballers.
At that time,the fullback had just joined the Reds, on a three-year deal, and was fined $30,000 for bringing the game into disrepute, suspended for six weeks and demoted from the vice-captaincy.
Hunt also underwent a drug rehabilitation program at the time and was subjected to targeted drug testing after that 2015 incident.