The All Blacks have revealed the discovery of a listening device in the Sydney hotel room used for their team meetings ahead of Saturday night's Rugby Championships Test against Australia.
New Zealand Rugby Union chief Steve Tew has confirmed the bug was found during a routine security check on Monday and says police have been called in to investigate.
"The hotel immediately launched an investigation, we have informed the Australian Rugby Union and jointly we have now decided to hand over the investigation to the Australian police," he said.
"We are taking this issue very seriously and given it will be a police matter, it would not be prudent to go into further details."
The All Blacks have been staying at the Intercontinental in Double Bay.
The team is set to play the Wallabies in the Bledisloe Cup opener on Saturday night.
According to the New Zealand Herald, the device was buried in the foam of a seat, which had been carefully cut and sewn or glued back together.
ARU boss Bill Pulver has told the paper he was informed of the discovery by Tew on Saturday morning.
Pulver dismissed any suggestion the Wallabies were involved as "ludicrous".
"I just think it's a ludicrous concept that there are listening devices being placed in team rooms. I don't know how that could happen," he was quoted as saying.
"I simply don't know the background but I'm clearly disappointed it gets out to the media on the day of a Bledisloe Cup match."
All Blacks coach Steve Hansen usually delivers an outline of the week's build-up to a game on the Sunday before a Test, including the game plan and his expectations according to the Herald.
The device was located the day after the meeting.
It's understood Wallaby team officials are doing everything possible under the circumstances to make sure the players' have as normal a lead-in to the game as they can.
A spokesman for the Intercontinental Sydney Double Bay hotel told AAP on Saturday morning management was investigating and hoped to have more information soon.
An Australian Federal Police spokesman said they weren't involved and it was a NSW matter.
NSW Police said did not have any immediate information.
The Australian Rugby Union had no further comment to make.
A police vehicle and two officers arrived at the Interncontinental late on Saturday morning with a media contingent gathering in the lobby.