Panesar, 31, was partying at a Gay Pride event at the Shooshh nightspot on Brighton's beachfront in the early hours of Monday until, according to The Sun, a group of women complained that he was hassling them.
Door attendants reportedly asked the spin-bowler to leave as a result, prompting Panesar to go up to the promenade above the club and urinate directly on the bouncers who had ejected him.
After realising what had happened, it is understood that the doormen chased after Panesar, catching up to him after cornering him in a pizza restaurant nearby.
The cricketer was heard shouting "Help, help!" as he was dragged back to the club in an armlock by the bouncers.
Police were then called to Shooshh, and Panesar was fined £90.
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."
Hove resident Panesar has subsequently apologised for his behaviour, though his county club Sussex are investigating the matter.
The cricketer’s spokesman said: "Monty would like to apologise unreservedly for any offence caused."
Panesar was in the England squad which retained the Ashes in Manchester over the weekend, though he did not play in the third Test.