A cafe owner in outback Queensland is refusing to apologise after propping a sign out front saying, "Sorry, no Muslims".

The message, which has generated a massive reaction online, was written at the bottom of a sandwich board outside Longreach's Eagle's Nest Bar and Grill.

The full message reads: "2000 years ago Jesus Christ made headlines turning water into wine ... the tradition continues ... We turn money into beer (Sorry No Muslims)."

Last Friday a customer took offence, posting a one-star review on the cafe's Facebook page as well as a photo of the sign, asking, "what’s that about???".

It set off a flood of comments, divided between praise and condemnation.

Cafe owner John Hawkes said his business and home had received more than 200 phone calls about the sign, which he said was only up for nine hours, ABC News reports.

"While the great majority are in support of free speech and are of patriotic sentiment, we have fielded too many abusive and threatening calls. For this I apologise to my family," Mr Hawkes said.

"I sincerely hope I don't end up sanitising my every thought to the robotic degree that is evident in commercial life around us."