Prosecutors in Bali have confirmed they are considering charging a 14-year-old Australian boy with drugs offences that carry a jail term.

The boy, from Morisset Park near Newcastle, was arrested earlier this month after allegedly buying a small amount of marijuana.

The prosecutors have accepted a police assessment which gives them a choice of three charges.

The most serious charge carries a jail term; the least serious would see the boy escape without a criminal record due to his status as a minor.

Authorities say the only place available to hold the boy before his trial is the notorious Kerobokan prison, where Schapelle Corby and the Bali Nine are being held.

The boy is unlikely to be moved out of his police holding cell until Monday.

The teenager, who was on holidays with his parents and staying in the resort area of Legian, was with a friend when he was arrested on October 4.

It is alleged he bought the marijuana for the equivalent of $25 after being approached by a dealer while on his way to get a massage in Kuta earlier in the afternoon.

Police then detained him outside a supermarket after he left the place where he received the massage.

Among the evidence is a test saying the teenager's blood and urine have tested positive to marijuana.