A New Zealand man could be facing years behind bars in Bali or even the death penalty after being caught possessing drugs, according to media reports.

The man, identified only as "MP", reportedly received a box containing drugs into his registered mailbox at a post office in Bali's main city of Denpasar.

Media outlet Coconuts Bali reports the post office's sniffer dogs detected the package sent by a Canadian friend of MP, which contained about 3 grams of cocaine, almost 2g of MDMA, and 1.7g of meth.

The 42-year-old "half-Indonesian" man had been living in South Kuta for six months and was arrested in a parking lot on August 30.

He reportedly told police the package was a birthday present.

Under Indonesia's anti-narcotics law, MP may face at least four years behind bars or even the death penalty if proven guilty of drug possession and trafficking, Coconuts Bali said.

It said Bali Police Chief Gde Sugianyar Dwi suspected MP to be part of a drug trafficking ring in which authorities had earlier arrested other members from countries, such as Brazil, the United Kingdom and Mexico.

Antony de Malmanche with his son Shaun de Malmanche after his sentence. Photo / AP

Fellow Kiwi Antony de Malmanche was arrested in Bali almost eight years ago after being caught with 1.8kg of methamphetamine in his backpack while arriving at Denpasar Airport.

• Popular airline leave thousands of travellers trapped in Bali
• Kiwi mum and daughter left stranded in Bali with $2500 bill after flight cancellations

He was convicted and jailed for 15 years.

Malmanche, from Whanganui, maintains his innocence, claiming he was set up as a drug mule by his girlfriend Jessy who he met online.

His team claims he was scammed by a highly organised cartel.