Watch: Aussie bloke in Santa costume arrested outside Bunnings

An Australian Santa looks like he's on the naughty list himself this year after being arrested outside a Bunnings Warehouse store.

The man dressed in a Santa suit was allegedly seen behaving erratically inside the Melbourne Bunnings Warehouse on Thursday and was refusing staff's requests to leave.

He then reportedly assaulted police officers, who were forced to pepper-spray him.

Dramatic footage from the scene shows the fake Santa screaming as he lay on the ground and being handcuffed by a group of police officers.

"Officers were forced to escort the man off the premises but he resisted officers and assaulted them," a Victoria Police spokesperson told 7 News.

"OC spray was used by police and the man was given after-care and an ambulance called."

After being pepper-sprayed, the man reportedly became unconscious and was taken to hospital for treatment.

An investigation into the incident is ongoing.