David Taylor and Sara Connor were arrested on Friday in connection with the death of Wayan Sudarsa, whose body was discovered on Kuta beach on Wednesday with deep wounds on his head and neck, EFE news agency reported.
Connor's driving licence, ATM card and handbag were reportedly discovered near the body, while a smashed beer bottle at the scene is suspected of being the murder weapon.
Taylor and Connor were brought for questioning on Saturday, but police are yet to state whether they are suspects,
Each could face a maximum of 15 years in prison if they are found guilty of second degree murder.
Police said the duo have confirmed their presence on the beach at the time of the murder, but have denied any involvement in the crime.
Connor has claimed that she was drunk and unable to remember all the events of the night.
Conner's family said she travelled to Bali for a holiday to meet Taylor, a British-born DJ who had lived in Byron Bay until recently.
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