New Zealand believe they have discovered a listening device in a meeting room in their Sydney hotel ahead of today's match against Australia.
According to the New Zealand Herald the world champions found a "sophisticated" device on Monday after completing a sweep of the room.
It's reported that the device was discovered inside a chair, which appeared to have been cut open and then carefully sewn back together.
"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," explained CEO of New Zealand Rugby, Steve Tew, in a statement issued on Saturday.
The Australian Rugby Union had been informed but its head, Bill Pulver, told the New Zealand Herald that the allegation was "ludicrous".
"Mate, of course [the ARU is not involved]," he said, with The New South Wales Police Force having attending the hotel about the matter.
"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."
The paper added that the bug "was a highly skilled and meticulous act and whoever put it there would have needed a significant amount of time to have pulled off such an accomplished job".
Australia face New Zealand in Sydney in the opening Rugby Championship match on Saturday.