Wallaby legend George Smith has been sacked by Suntory Sungoliath after his arrest for the alleged assault of a taxi driver.

The 37-year old was arrested in Tokyo on New Year’s Eve after he allegedly assaulted a taxi driver after refusing to pay his taxi fare.

Smith, who denied the allegations, was detained in prison for 18 days after prosecutors decided not to press charges.

Suntory has apologised for the incident and made the decision to cancel Smith’s contract.

‘No indictment was made as a criminal case, but the company takes this incident seriously and decided to discontinue our contract with George Smith as of the end of January and make him leave the club while strictly reprimanding his supervisor,’ the club said in a statement.

Suntory added it will take thorough measures to educate players to ensure similar incidents do not occur.

Smith had also been fined and reprimanded by the Queensland Rugby Union.

Photo: @sungoliath