Byron Bay woman Sara Connor has been named a suspect in the alleged murder of a Balinese police officer, according to one of the lawyers she has appointed to represent her.
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"She is a suspect. I have been appointed as her lawyer along with Robert Khuana," Erwin Siregar told Fairfax Media. "The suspect interrogation is happening right now."
Mr Siregar also represented drug smuggler Schapelle Corby while Mr Khuana represented Bali nine member Scott Rush.
Denpasar police chief Hadi Purnomo confirmed Ms Connor and David Taylor had been determined suspects.
They face possible charges of second degree murder and/or manslaughter and/or assault causing death.
These three crimes carry maximum sentences of 15, 12 and seven year prison terms respectively.
Earlier, the strain was showing as the woman described as a "treasured part of the Byron Bay community" was hustled out of a police hospital in Bali on Saturday with a gaudy sarong over her head.
It had been less than 24 hours since Ms Connor was brought handcuffed to the Denpasar police station with her British DJ boyfriend David Taylor for questioning over the grisly and mysterious killing of Bali police officer Wayan Sudarsa.
The pair must have barely slept for days.
At 4am on Saturday Mr Taylor, aka DJ Nutzo, who until now was better known for his breakbeat, electro, drum 'n' bass and dubstep, was taken to the crime scene.
He said he and Ms Connor had been there, according to Mr Purnomo, but that was it.
Asked if they had admitted to encountering the slain police officer, Mr Purnamo said: "That's being investigated. They've only admitted being at the scene."
The police interrogation, in front of a lawyer and translator, was slated to start at 10am Bali time.
Instead the couple were taken to Trijata police hospital in Denpasar for a physical examination, presumably to be used as evidence.
Mr Taylor had wounds on his hands, which he had earlier told police were old injuries and not related to the attack that ended the police officer's life.
The "distraught" Byron Bay community rallied around Ms Connor, a mother of two young boys, who founded the company Byron Bay Fresh Pasta.
In a statement friends, family and colleagues said they were devastated by her arrest, saying it was "totally out of character for this beautiful person".
They said Ms Connor was a positive, creative and happy person who had worked hard to establish her business in a highly competitive market while raising her two boys.
In her spare time she was active with her boys' sporting pursuits, a "great organiser", who brought people together.
"She has a huge heart. Her love for her boys is the biggest love in her life."
Now Ms Connor is thousands of kilometres away from her boys as authorities attempt to unravel what went horribly wrong in the fateful small hours of August 17.
The Balinese are also in mourning for the slain police officer Mr Sudarsa.
On Saturday a Hindu ceremony known as Mecaru, a ritual to cleanse the area, was held by villagers at the crime scene on Kuta beach.
Ngaben, the Balinese cremation ceremony for Mr Sudarsa, will be held on Sunday.
The crime scene is still taped off with yellow police line tape but around the square of cordoned off sand hawkers still ply their wares and tourists sun themselves, seemingly oblivious to the death in their midst.
Lawyers and officials from the Australian consulate in Bali arrived at Denpasar police station on Saturday morning.
