Vision which shows a verbal altercation between a Melbourne cyclist and the driver of a horse-drawn carriage is evidence of a growing problem in Melbourne's CBD, according to a Greens councillor.

The incident was filmed using a helmet-mounted camera by a cyclist named Brett as he headed north along St Kilda Rd on Saturday afternoon.

The cyclist, who only wanted to give his first name, said that he was waiting until the police had investigated the incident before commenting further.

In the three-minute video, the horse-drawn carriage appears to run a number of red lights and cut off the cyclist near Flinders St Station.

At one stage the cyclist asks the driver of the carriage for his name and he appears to reply by saying, "Yeah, it's called piss off dick head".

A spokesperson for the City of Melbourne, which is responsible for allocating permits for horse-drawn carriage operators in the city, said that the council has no legal control over carriage operators in the CBD.

"The incident captured in the YouTube clip has been reported to Victoria Police which is the responsible authority for monitoring and enforcing the Road Safety Road Rules," the spokeswoman said.

"As such the City of Melbourne cannot identify the driver of the horse-drawn vehicle, but can confirm that the operator in the clip is not a current City of Melbourne horse-drawn carriage permit holder."

The ABC has contacted a man named as the driver on the Facebook page of a group called Melbourne Against Horse-Drawn Carriages.

The man confirmed he operated a carriage in Melbourne but refused to confirm whether he was the driver involved in the altercation.

The man insisted that horse-drawn carriages have right of way on the road.

When pressed to confirm if he was the operator involved he said: "What do you think I am, a f***ing police informer. F*** off."

Greens councillor Rohan Leppert said that there had been an alarming increase in the number of complaints received by councillors about horse-drawn vehicle operators in recent months.

"Whilst some operators follow the road rules and code of conduct, there are others who frequently flout the rules, and too often this results in a direct threat to public safety," Councillor Leppert said.

"I believe the problem is getting out of hand, and Government will need to look at stepping in to deal with rogue operators."

Despite the council's permit system for horse-drawn carriages, there is currently no law against unpermitted operators picking up private bookings from hotels and other venues.

Alex MacDonald, who has operated a licensed horse-drawn carriage in the city for 29 years, said the vision did not reflect well on his industry.

"It's not a good look for the industry at all," Mr MacDonald said.

"It wasn't very good behaviour, it was pretty appalling behaviour from both sides."

A spokesperson for Victoria Police said the video had been reviewed and police will not be taking further action.