The incident happened at 4am on Monday, just hours before England retained the Ashes at Old Trafford by drawing the third Test for which Panesar was included in the 14-man squad but not named in the playing XI.
The 31-year-old left-arm spinner had been partying at the Shooshh club on Brighton's beachfront, which was hosting a Gay Pride event. However, when a group of women complained he was hassling them, Panesar was asked to leave, the tabloid 'Sun' reported.
The bouncers dragged Panesar back to the club and called the police. He was fined 90 pound sterling by the Sussex police.
A Sussex Police spokesman said, "A 31-year-old man received a fixed penalty notice for being drunk and disorderly after being seen urinating in public near the Shooshh Club in King's Road Arches, Brighton, around 4.13am on Monday."
Panesar later released a statement, through his spokesperson, offering an "unreserved apology" for his behaviour.
Sussex County Cricket Club have launched an investigation into the incident.
A statement on the club's website read: "Sussex County Cricket Club can confirm that an incident took place involving Monty Panesar in the early hours of Monday 5 August. The matter is under full investigation and the club will make no further comment at this stage.
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