A Melbourne advertising agency has apologised to residents of Sydney's inner west, after it painted over an iconic Newtown mural with a promotional ad for Jennifer Lawrence's upcoming movie Mother!

The agency, Apparition Media, based in Melbourne's Fitzroy, was criticised by locals for defacing the prominent It's like a jungle sometimes artwork, long-featured on a heritage-listed building on Enmore Road.

The ad for the upcoming Paramount Pictures film, which was painted at the weekend, was quickly covered in protest graffiti saying: "No respect".

After receiving complaints from locals, the Inner West Council said it "did not approve the advertisement", which is prohibited in heritage areas, and that the matter was being investigated by the Council's Compliance Section.