World Rugby say the result will stand but disciplinary action could follow after New Zealand had eight players on the field when they scored a post-siren try to snatch a draw with Australia at the Sydney Sevens on Saturday night.
The quarterfinals are expected to proceed on based on Saturday night's results, with Australia playing England and New Zealand facing the United States.
Video footage appears to show eight? Kiwi players on the field in the lead-up to Ardie Savea accepting an inside pass from captain Tim Mikkleson and scoring to level the score at 17-all in their pool match on Saturday night.
"World Rugby can confirm that it is investigating an apparent breach of Law 3 (number of players on the field if play) by the New Zealand sevens team," the governing body said in a statement on Sunday.
"The alleged incident occurred during the second half of New Zealand's Pool A match against Australia on February 6.
"In accordance with Law 3.2 the result of the match will stand, but World Rugby is currently reviewing the matter to determine if any disciplinary action is warranted.
"No further comment will be made until the outcome of the investigation."
A New Zealand sevens team spokesman said earlier on Sunday morning that they were waiting for information from World Rugby.
Did New Zealand have eight players on the field in the lead-up to match-leveling try against Australia?
With eight players on the field, more than half of the New Zealand side touched the ball in the ensuing play which lead to a try.
New Zealand defeated Canada 27-12 and Portugal 40-5 in their earlier pool matches.
Earlier, Australia mustered their best performance of the inaugural world sevens tournament in Sydney after racing to a 17-5 lead at halftime.
It took just 38 seconds for New Zealand to take the lead as Rieko Ioane made a break down the left side. Greg Jeloudev thought he had extra cover, but the speed of Ioane was too much for him.
Aussie skipper Ed Jenkins hit back in style, making a similar run down the opposite flank and but James Stannard's missed conversion meant the scores remained level at a try apiece.
After some audacious ball movement from wing to wing by the Aussies, Stannard produced a Johnathan Thurston-like dummy before crashing over to put Australia ahead 17-5 at the main break.
Andy Friend looked a measured man at halftime, knowing the job was not completely done, but somewhat satisfied his players had orchestrated their best seven minutes of the tournament.
Australia and New Zealand both chalked up two wins each and finish equal on points at the conclusion of three games. New Zealand finished above them on for-and-against.
Australia captain Ed Jenkins admitted the draw was somewhat "bittersweet" but said his side would be making sure they were ready for England come 12.19pm on Sunday.
"Either way we have to win that first game tomorrow morning so it doesn't matter," Jenkins said.
"We've made that mistake before where we haven't turned up and we've been done and dusted and then you're playing for the plate, so we want to go all the way and that means winning that first up game.
"They [New Zealand] took it out last week and for us to come that close we probably should have shut them out at the end of the game.
"A bit disappointing, but we can look at the way that we didn't lose a game today."
- Sydney Morning Herald
