A mural of Prime Minister Scott Morrison in Hawaiian garb with flames rising all around him has appeared on an inner-Sydney wall.

Artist Scott Marsh on Tuesday posted a photo of the Chippendale artwork - with Mr Morrison saying "Merry Crisis!!" via a speech bubble - on Instagram.

Mr Morrison is depicted in the mural wearing an unbuttoned Hawaiian shirt, orange lei and Santa Claus hat while holding a cocktail.

In the background, red and black flames rise high.