Steven Yates of Japanese Top League side Toyota Verblitz was arrested Thursday on suspicion of possessing cocaine, police said.
Yates, 35, has admitted to being in possession of a small amount of cocaine found in a plastic bag at his home in Nagoya, central Japan, the same day, the police said.
Yates, born in New Zealand, gained Japanese nationality in 2015.
Last week his teammate Ryota Kabashima, 28, was arrested on suspicion of possessing about 1 gram of cocaine in his wallet.
Toyota has suspended the team's operations since Kabashima's arrest.
(Steven Yates in action in December, 2018)[Getty/Kyodo]
"We sincerely apologize for the continued arrests of our team members. We deeply regret that we have caused trouble at a time when Japan will soon host the Rugby World Cup," Toyota said in a statement.
Toyota finished fourth in the Japan Rugby Top League last season.
While it is rare for sports teams around the world to suspend activities based on the actions of individual athletes, Japanese teams often take responsibility for their players.
Kanto Gakuin University pulled their rugby team out of the 2007-2008 All-Japan Championship after two students were arrested for growing cannabis plants at an apartment in Yokohama. More than 10 other students on the team admitted smoking marijuana.
In 2009, Toshiba Brave Lupus withdrew from the season-ending tournament after Tongan-born winger Christian Loamanu tested positive for marijuana, despite having earlier won the Top League crown.