A Melbourne nightclub has apologised for a "Corona Chinese New Year Special", amid rising concerns of sinophobia during the coronavirus outbreak.

Last Friday's event at Prahran nightclub Pawn & Co included a deal for $8 Corona beers and a "limited edition face mask", playing on the outbreak that has so far killed about 500 people.

The ad that caused the furore. Credit:Instagram/the.llag

Marketing for the event also included a cartoon rice hat.

Pawn & Co and the event promoters, Mr Chan's, have both acknowledged the marketing was offensive and insensitive in statements posted to Facebook on Wednesday.