A 38-year-old New Zealand woman, who has been living in Australia, is being held by Bali police as a suspect in a drug case.

The Denapasar Narcotics Unit raided the villa it says the woman lives in and discovered 26.9 grams of methamphetamine.

Police Commissioner Agus Tri Waluyo says 0.3 grams of hashish was also found.

Leeza Tracey Ormsby was taken into custody and has given police a Sydney address.

She is now being held in a Bali police cell.

Officers are investigating the case to decide what charges might apply.