The 31-year-old spinner has since apologised after it emerged that he was drunk and disorderly, and urinated on bouncers at Shooshh Club after being thrown out of the venue on Monday.
"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 4.13 am on Monday," a Sussex Police statement said.
According to The Sun newspaper, Panesar, who lives in nearby Hove, was celebrating his team's Ashes success but was asked to leave following complaints that he had been hassling women in the beachfront bar.
"Monty would like to apologise unreservedly for any offence caused," the cricketer's spokesperson said.
His English county club, Sussex, has launched an investigation.
"Sussex County Cricket Club can confirm that an incident took place involving Monty Panesar in the early hours of Monday August 5," Sussex County Cricket Club said in a statement.
"The matter is under full investigation and the club will make no further comment at this stage."
Panesar was picked for the England squad that retained the Ashes in Manchester on Monday but he did not play.
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