Aug 19th, 2016

Josh Palmer and Emma McKeon. (AFP)

Aug 19th, 2016

Australian swimmer Josh Palmer says he was threatened with a gun and forced to withdraw $1000 in broad daylight after an all-night bender in Copacabana.

Nine hours after he parted with Olympic teammates at a nightclub in Copacabana, Palmer was found severely disoriented near the beach by two businessmen in the mid-afternoon.

The hours between 10.30am and around 1.40pm on Wednesday are a mystery to the 25-year-old.

The only thing he appears certain of is that he was threatened with a gun by a man selling hats who, with several other men, forced him to an ATM to withdraw $1000.

Palmer was in such a bad state, a source says the Australian businessmen and his English colleague saved his life when they found him.

The swimmers had been to three nightclubs in Copacabana and when they decided to head back to the athletes' village at 4.30am on Wednesday, Palmer and prominent Melbourne lawyer Justin Quill continued drinking at a beach kiosk.

When his teammates awoke and found he wasn't back in the village at 10.30am, James Magnussen rang Quill who said he had just left Palmer at the beach and assumed he was on his way back to the village.

More than three hours later, with his phone missing, Palmer was found dazed and disoriented by the businessmen who contacted Australia's consulate in Rio.

Even though Magnussen had told swimming team leader Wayne Lomas at 10.30am, Lomas did not tell chef de mission Kitty Chiller.

Chiller only found out at around 2pm when the consulate told her they had picked Palmer up at the beach.

Palmer originally told officials he had fallen asleep on the beach when the hawker approached him, but later said he was just sitting there.

He has not reported the incident to Rio police.

Chiller said she had no reason to doubt Palmer's version of events and suggested the recent drama surrounding American swimmer Ryan Lochte may have convinced him not to go to police.

Lochte's initial claim he was also robbed at gunpoint has been revealed to be fabricated.

"There's been a lot happening in the last couple of days with going to police," Chiller said.

"We gave Josh every opportunity and the pros and cons of going to police. We can't force him, it's his decision."

Palmer and fellow swimmer Emma McKeon, who also failed to return to the village, have been disciplined.

McKeon broke team protocol by staying in Copacabana with friends, believed to be Swedish swimmers, without telling team management.

They had also breached team rules of always travelling in groups of at least three.

The pair have been put on a curfew of 8pm to 8am for the remainder of the Olympics and banned from the closing ceremony.

The entire Australian swimming team must also be back in the athletes' village by 2am.

Chiller said athlete safety was paramount and officials were not being the fun police.

"I don't want to call a parent and tell them their child has been robbed, mugged or anything worse," she said.

Chiller has also chastened Lomas.

"I have raised the need for the swimming team leader to ensure he is aware of his athletes' whereabouts," Chiller said.

Palmer finished fifth in his heat of the 100m breaststroke on day one.

McKeon won four medals at this Games.

"To clarify, I've followed AOC safety protocol in not travelling to village alone. My error was not texting my team manager. #noclosingforme," McKeon tweeted.

©AAP2016