Oxford Street's rainbow crossing, designed to mark 35 years of Sydney's Mardi Gras, has been ripped up by the state government following a stand-off with the city council.

The crossing was removed late on Wednesday night and Thursday morning.

Roadworkers rip up the rainbow crossing in Oxford Street at Taylor Square on April 10, 2013. Credit:Dallas Kilponen

The City of Sydney Council was responsible for removing the crossing, but lord mayor Clover Moore wrote to Roads Minister Duncan Gay late on Friday demanding he explain why he thought it necessary to rip the crossing up.

Instead of replying, Mr Gay instructed his department, Roads and Maritime Services, to bypass the council and rip the crossing up on Wednesday night.