A British man and an Australian woman are being held after a policeman was found brutally murdered in his uniform on a Bali beach.

The officer, Wayan Sudarsa, was discovered with head and neck wounds on Kuta beach on Wednesday.

"A smashed beer bottle and smashed-up surfboard were found near him, we suspect those were used in the attack," said Bali police chief Sugeng Priyanto.

Briton David Taylor and Australian Sara Connor - believed to be a couple - were arrested on Friday after going to the Australian consulate.

"We are investigating whether they are the perpetrators or not," said Mr Priyanto - who added that witnesses had seen a man with dreadlocks arguing with a police officer.


A man covered in blood and a woman - matching the couple's description - were later seen trying to catch a motorcycle taxi.

Ms Connor has admitted being drunk the night of the killing and arguing with a policeman, said detectives, but she cannot remember exactly what happened.

Police began hunting the pair after Ms Connor's bank card and driver's licence were found at the crime scene.

Although they have been arrested, the pair have not been formally named as suspects - a step in the Indonesian legal system that means there is enough evidence to consider charges.

The British Embassy in Jakarta confirmed "the arrest of a British national in Bali", while Australia's foreign affairs department said it was "providing consular assistance to an Australian woman in Bali".

The pair are being held at a police station in Bali's capital, Denpasar.