THE All Blacks have been rocked by a bugging bombshell ahead of Saturday’s first Bledisloe Cup Test against the Wallabies.

According to a New Zealand Herald report, a listening device was found in the All Blacks team room at their hotel in Sydney.

The Herald reported that the device was planted in a chair, with the hotel now investigating how it got there. The device was discovered on Monday by team security and was believed to be live.

New Zealand Rugby Union confirmed the incident to the Herald.

“A listening device was found in a meeting room this week during a routine security check,” CEO Steve Tew said in the statement.

“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.

“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 in action during a June Test against Wales. Source: Getty Images

New South Wales Police are due to address the media later Saturday, saying in a statement the press conference would relate to “a listening device ... located in a room at a hotel in Double Bay on Monday 15 August”.

“Inquiries are continuing,” police said in the statement, adding that they were only made aware of the allegation on Saturday.

An Australian Rugby Union spokesman made no comment.

But ARU chief executive Bill Pulver told the New Zealand Herald there was no way his organisation had anything to do with the device.

“Of course (the ARU is not involved). It is completely 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,” Pulver was quoted as saying.

“I’m utterly disappointed the story would break on match day and frankly, that’s all I’ve got to say. We are going to focus on a game of rugby that we’ve got tonight and we will deal with this matter after the rugby.”

ARU CEO Bill Pulver vehemently denied anyone in the Wallabies camp had anything to do with the incident. Picture: Brett Costello Source: News Corp Australia

A spokesman for the Intercontinental Sydney Double Bay hotel where the All Blacks were staying said management was investigating the New Zealand team’s complaint.

The device - described as similar to that used by law enforcement and spying agencies - was found inside a chair in the hotel on Monday, a day after the All Blacks arrived.

The foam of the seat appeared to have been deliberately and carefully cut to make way for the surveillance device and then sewn or glued back together to be almost undetectable, according to the New Zealand Herald.

It was discovered after team management asked the security detail looking after them in Australia to sweep the room for bugs.

The Herald said it had been told that hiding the device “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.”