Residents annoyed at the smell and smoke from grilled meat drifting through their balcony windows and ventilation have forced the closure of an inner Melbourne steakhouse.

The Longhorn Saloon in Elgin Street, Carlton, shut its doors on Friday after it was hit by an improvement notice from the City of Melbourne, which found that the smoke, food and cooking odours being emitted by the restaurant were "offensive and constituted a nuisance".

In addition to a series of complaints about the smell, a group of upset residents from a neighbouring apartment building had also objected to the council about excessive noise from the kitchen's extractor fans.

The restaurant had been given three weeks to install new ventilation systems when the initial order was given on March 22, but owner Will Balleau said meeting that timeframe was impossible. He said the cost of the work had been quoted at $100,000.