Police used pepper spray to disperse a group of far-right protesters who disrupted a rally of asylum seekers in Melbourne on Tuesday night.

Victoria Police said officers were attending a planned rally to mark the closure of a refugee camp near the Home Office in Docklands.

A group of about 20 people, dressed in black and with their faces covered, showed up at the rally site shortly before 6 p.m.

The group chanted white supremacist slogans and hung an offensive banner near the camp.

Police lined up to separate the far-right group from a group of about 300 demonstrators seeking asylum and were forced to use pepper spray.

Victoria Police said there have been no arrests or reports of injuries and they are reviewing video footage of the incident.

Asylum seeker rally organizer Aran Mylvaganam of the Tamil Refugee Council said it was a disturbing scene.

“These chants were hate speech in the sense that saying ‘Australia is for white people’ is hate speech,” he said.

“The police pepper sprayed them and the crowd basically chased them away.

Mr Mylvaganam said one of the asylum seekers speaking at the rally was pepper-sprayed by police.

“I spoke with our fundraising team and I received information that the police had pepper sprayed our group long before they took any action against (the far-right protesters).”

“They (far-right protesters) were pepper-sprayed but were then allowed to continue marching,” he said.

Police say they will assess the circumstances of the demonstration and have asked anyone with information to contact CrimeStoppers on 1800 333 000.