An Australian nurse has been charged with drug trafficking in a court in Kuala Lumpur.

Under Malaysia's tough laws, the charge carries a mandatory death penalty in the event of conviction.

Emma Louise L'Aiguille a 34-year-old nurse from Melbourne, was arrested at 3:30pm (local time) on July 17.

It is alleged she was in the driver's seat of a parked car that was searched by police, who allege they found 1.005 kilograms of methamphetamine (or ice) hidden under a seat.

She says she had no idea the drugs were in the vehicle.

She has been charged under section 39b (1a) of the Dangerous Drugs Act, which carries a mandatory penalty of death by hanging upon conviction.

L'Aiguille was in tears when she was brought into the court, handcuffed to another female prisoner.

Her lawyers say she has severe depression and has been denied her rights by Malaysian authorities.

They say her medication has been withheld.

L'Aiguille had been living in Perth where she was working as a registered nurse and making regular trips as a tourist to Malaysia.

She will be held at a women's prison until the next hearing on October 1.

Nigerian man Anthony Esikalam Ndidi, who was a passenger in the vehicle, has also been charged.