A Perth man has spent the night behind bars in Bali after allegedly attacking a taxi driver.

The 23-year-old is accused of punching the man after getting into an argument over a mobile phone in the early hours of Tuesday morning.

Local police reportedly said the man was found hiding in the storage room of a convenience store after the alleged incident.

No charges have been laid but the man could face up to 2 years and 8 months in jail.