Gigi Hadid has incurred a fine of 1,000 Cayman Islands dollars (equivalent to approximately US$1,220) following her arrest for cannabis possession in the Cayman Islands.

The 28-year-old model, who has been a host of the Netflix competition show Next In Fashion, was arrested along with her friend Leah McCarthy on July 10.

According to the Cayman Islands Customs and Border Control, the pair were arrested for "the importation of marijuana and importation of utensils used for the consumption of marijuana."

Hadid and McCarthy had arrived on a private jet from the U.S., where their luggage was searched and a small amount of cannabis was recovered.

They appeared in the Cayman Islands summary court on July 12 and were charged with importing a controlled drug and importing a drug utensil, to which they entered guilty pleas.

They were charged 1,000 Cayman Islands dollars and no conviction was recorded, authorities said.

A representative for Hadid said she was "enjoying" the Cayman Islands despite the arrest and that the cannabis had been purchased legally in New York "with a medical license."

The model also shared pictures on her Instagram on Tuesday of her holiday, which showed her on the beach with friends, writing, "All's well that ends well."

In a statement shared with the PA news agency, Hadid's representative said, "Gigi was traveling with marijuana purchased legally in NYC (New York City) with a medical license."

"It has also been legal for medical use in Grand Cayman since 2017. Her record remains clear and she enjoyed the rest of her time on the island."

Hadid began her modeling career aged two after being discovered by Guess co-founder, the Moroccan-born fashion designer Paul Marciano.

She has gone on to work with brands including Versace, Chanel, Fendi and Marc Jacobs and made over 30 cover appearances for various international editions of Vogue.

Hadid has been involved with former One Direction member Zayn Malik and the pair share a daughter.