Australian teen Jamie Murphy released as white powder tests negative for drugs

Jamie Murphy has now been released (AAP)
Jamie Murphy has now been released (AAP)

An Australian teenager arrested after carrying a white powder in Bali has been released after tests confirmed it wasn't an illicit drug.

Jamie Murphy, 18, was suspected of possessing narcotics when security at a nightclub found the powder on him just after midnight on Tuesday (local time).

He was facing potential life in jail in the country, which is notoriously tough on drug crime.

But tests of the powder and the teenager's hair and urine have confirmed the powder concoction was innocent.

Kuta police chief Wayan Sumara says it was a mix of paracetamol, caffeine and two types of cough medicine.

Mr Murphy has now been released.

The Perth teenager is part of a massive influx of youth frequenting the holiday island and its night spots over the past week for 'schoolies'.