A prosecutor has asked a magistrate to take the words of Salim Mehajer with "a very, very large grain of salt" after the former deputy mayor of Auburn asked for his assault hearing to be adjourned.

Mr Mehajer, 31, has pleaded not guilty to assaulting a taxi driver and stealing his eftpos machine and phone near the Star Casino in April last year.

After eight nights in prison, a tired and drawn looking Mr Mehajer arrived at the Downing Centre Local Court this morning for a two-day hearing.

However, before it could begin solicitor Brett Galloway withdrew from the case, telling Magistrate Vivien Swain he had been asked to take a position which was "untenable".

Magistrate Swain asked Mr Mehajer if he would be representing himself, to which he replied he would like an adjournment to organise new legal representation.

The property developer said a court order freezing his funds had meant he had been unable to pay his lawyers.

"If I get an adjournment I will have time to get funding from a different person or entity," Mr Mehajer told the court.

"I am happy to pay for the other side's costs for today if need be and, of course, court costs."

Accused has right to be represented, magistrate says

Salim Mehajer has pleaded not guilty to assaulting a taxi driver. ( AAP: Dan Himbrechts )

Police Prosecutor Amin Assaad said he would not be seeking costs but did oppose adjourning the hearing for a second time.

The first hearing, in October 2017, was adjourned after Mr Mehajer was involved in what police allege was a staged car crash on the way to court.

Officers arrested and charged Mr Mehajer earlier this month with perverting the course of justice and conspiracy to defraud in relation to the crash.

Sydney solicitor Brett Galloway leaves Downing Centre Local Court today. ( AAP: Lucy Hughes Jones )

"I would take the words of Mr Mehajer with a very, very large grain of salt," Mr Assaad told the court as he opposed the latest delay in proceedings.

Magistrate Swain granted Mr Mehajer an adjournment until Thursday morning.

"I have taken into account the inconvenience of the prosecution witnesses who are attending court for the second time, however I am also taking into account the accused's right to be represented," she said.

Outside court Mr Galloway told reporters he had not withdrawn because he was not paid, but for ethical reasons.

"It's not anything to do with money whatsoever at all — I would never withdraw from a court case because of money," Mr Galloway said.

Police allege the taxi driver assault and theft happened after Mr Mehajer left the Star Casino about 4:30am on April 2, 2017.

The driver of the taxi, a 38-year-old man, received a nose injury.

Officers arrested Mr Mehajer in Darlinghurst 40 minutes later and charged him with assault occasioning actual bodily harm, destroying and damaging property, and larceny.

The next day he was also charged with assaulting a Channel Seven reporter who was outside a city police station covering the story.

Mr Assaad told Magistrate Swain there would be 14 witnesses giving evidence during the hearing — eight civilians and six police officers.