Irish police have launched an investigation after a wallaby was allegedly plied with ecstasy and alcohol and died at a hotel disco.

The marsupial was let loose among more than 150 revellers dancing at the Clarion Hotel in west Dublin, to the theme tune of Australian television show Skippy The Bush Kangaroo, the Belfast Telegraph reported.

Outraged animal welfare campaigners sparked the investigation after watching a film of the incident on Facebook.

The footage was also shown on Channel Ten in Australia, causing a furore among animal lovers.

Detectives have questioned Super Circus Sydney owner Alexander Scholl, sited 500 metres away from the hotel, in relation to the incident, but Scholl maintains he is innocent.

The circus owner told officers he had two wallabies - Skippy and Sydney - but rubbished claims either of them was used in the incident.

"They think it was one of my wallabies but it definitely was not. I would never lend them out to a nightclub with all the noisy music," he told the Telegraph.

"Someone told them the wallaby was given an ecstasy tablet and now it is dead. I said if it is dead then it is not one of my wallabies; I showed them Skippy and Sydney."

Lambay Island, off the coast of Dublin, is also home to some Wallabies and is being treated as a possible source.

Police sources told the Irish Times it was still unclear where the animal had come from or been taken to after the incident.

"We've spoken to a lot of people who were at the party but nobody has told us where the animal came from or what happened to it afterwards."

The Dublin Society for the Prevention of Cruelty to Animals (DSPCA) said it had received five complaints including from one person who claimed to be at the party.

DSPCA operations manager Orla Aungier told the Irish Times the marsupial was more likely a wallaby than a small kangaroo, because they were easier to buy in Ireland.

Aungier said the animal would have found the noise, lights and large numbers at the party "very stressful".

She said it was possible the animal had become injured or had died as a result of the experience.

"That is only alleged, but the most important thing for us is to find out where the animal is and if it is OK," she said.

Wallabies are classified as exotic animals in Ireland and there is no legislation governing their breeding or ownership.

They are offered for sale on online classifieds sites at around $1100.