Former Toyota Verblitz flyhalf Ryota Kabashima was released on bail of 2 million yen ($18,460) on Friday after admitting to a charge of possessing cocaine.
"I'm sorry for causing trouble to many people," the 28-year-old Kabashima, who faces a charge of violating the narcotics control law, said in front of a police station in Toyota, central Japan, where he had been detained.
The situation emerged as Japan prepares to host this year's Rugby World Cup, which will be held at 12 venues across the country from September.
Another player on the rugby team, Steven Yates, who was also arrested in June, has admitted to possessing a small amount of cocaine, found in a plastic bag at his home in Nagoya, according to police.
The Nagoya District Court's Okazaki Branch decided to grant Kabashima bail and rejected an appeal by prosecutors. Toyota Motor Corp., which operates the team in the country's first-tier Top League, dismissed him as an employee on Thursday.
According to the indictment, Kabashima was in possession of about 1 gram of cocaine while in a taxi on April 10 in Toyota.
Kabashima had previously denied the charge, saying he "didn't remember," according to police.