A man dressed like a dishevelled magician and behaving erratically while wandering the streets of a town east of Melbourne has been taken for medical assessment by police.

Police in Warburton said they had received several reports from the public about the behaviour of a man, who had white hair, a long black coat and a frilly white shirt.

"People have told police that the man's clothing is similar to that of a magician," police said in a statement.

The man appeared at a local hotel on Tuesday and asked to use the telephone.

Search teams were told hotel workers offered the man a glass of water and ride in a car.

The same day he was spotted lying across an access road to a private property in East Warburton, but when police arrived he had disappeared.

The man from Glen Waverley was described as being in his early 50s, of medium build with white, blond hair.