A violent confrontation erupted outside an Islamic-owned charcoal chicken shop as Muslim men allegedly hurled chairs at a Christian during a Liberal Party brawl.

A witness, going by the name of John, claimed he saw violence on the main street of Arncliffe in Sydney's south on Monday night, where a Christian man was stomped on and an elderly woman was punched and thrown to the ground.

The violence started inside a cafe and charcoal chicken shop owned by a Muslim businessman and Liberal Party councillor, Michael Nagi, and has been connected with a factional dispute within the conservative party.

A Liberal branch meeting erupted into a fracas at the Naji's Cafe as the moderate faction, linked to the business owner, had tried to bring the Earlwood branch into the Bayside chapter.

A war of words erupted outside an Islamic-owned charcoal chicken shop as Muslim men hurled chairs at Christians as part of a Liberal Party brawl

'Words erupted and basically from there, it turned into a religious war between Christians and Muslims,' John told radio 2GB breakfast king Alan Jones on Tuesday.

He also claimed the 'Muslims attacked one Christian guy, there's about 10 of them'.

'Got him to the ground, stomped on his head, got chairs, smashed him across the head, kicking him, table on his head.

'Some of the guys from, obviously, the Islamic faith were saying f*** off Christians, f*** Coptic dogs. They were there to intimidate.'

He claimed an old woman was also hit in the presence of children.

A witness described the scene of violence on the main street of Arncliffe in Sydney's south on Monday night, which saw a Christian man stomped on

'There was an elderly woman that was punched, they were thrown to the ground,' he said.

'There were children there that were obviously traumatised.'

The brawl started inside Naji's Cafe on Firth Street shortly before 7pm.

The cafe is owned by Bayside Liberal councillor Michael Nagi, a Shiite Muslim, who hails from the party's moderate faction.

It is understood the moderate faction was trying to allow the Earlwood branch to become part of the Bayside branch of the Liberal Party, Fairfax Media reported.

Mr Nagi told Nine News he would '100 per cent co-operate' with the police and the Liberal Party.

'I do not accept any behaviour of violence,' he said.

The violence had allegedly started inside a charcoal chicken shop owned by a Muslim businessman and Liberal Party councillor, Michael Nagi

Councillor Nagi in 2012 told his local St George and Sutherland Shire Leader newspaper that he had been previously targeted by arsonists because he is Muslim.

The businessman's other shop at Bankstown burnt down six years ago, which he blamed on anti-Muslim motives.

'It's because I am a Shiite Muslim. [It is] not political, not for any other reason,' he said then.

A Liberal Party spokesman said he was aware of the Arncliffe brawl and was cooperating with police.

The cafe is owned by Bayside Liberal councillor Michael Nagi, a Shiite Muslim, who hails from the party's moderate faction

'An internal investigation will also be undertaken and disciplinary action taken against those responsible,' he said in a statement to Australian Associated Press.

'The Liberal Party strongly condemns the kind of behaviour that is alleged to have occurred.'

The brawl came ahead of Tuesday's state budget, as New South Wales Treasurer Dominic Perrottet planned to mix record infrastructure spending with tax cuts and concessions.

Police from the St George area command confirmed one man, believed to be aged in his 40s, was taken to St George Hospital where he was being treated for minor injuries.

Councillor Nagi in 2012 told his local St George and Sutherland Shire Leader newspaper, he had been previously targeted by arsonists because he is Muslim

'On arrival officers saw numerous people running from the location,' the NSW Police said in a statement.

'Police are now attempting to piece together exactly what happened and how many people were involved.'

In November 2014, the owner of the Arncliffe charcoal chicken shop, Michael Nagi, condemned violence.

'There are many solutions to problems that don't involve violence,' he said on Facebook in praise of White Ribbon Day.

A NSW Police spokeswoman told Daily Mail Australia no charges had been laid as of Tuesday afternoon.