Victoria Police have confirmed they are investigating the alleged assault of a 30-year-old man - who sustained a minor leg injury - at a Prahran pub on Saturday night.
Ioane, 27, was reportedly with a 30-year-old relative at the hotel when the alleged incident occurred with another patron of the same age at about 5.40pm AEDT.
"Queensland Rugby is aware there was an incident involving Reds winger Digby Ioane in Melbourne on Saturday night," the Reds said in a statement.
"It's currently a matter for the Victorian Police and we are therefore unable to make further comment at this time.
"QRU can confirm no other Queensland Reds players were in attendance and is also undertaking its own enquires while working alongside the ARU and police."
It is believed Ioane and Reds five-eighth Quade Cooper remained in Melbourne after Friday night's 23-13 Super Rugby win over the Melbourne Rebels.
"It is believed a 30-year-old Brisbane man approached a 30-year-old Prahran man and the pair then became involved in a verbal altercation," a Victoria Police spokesperson told Fairfax.
"It is alleged the Brisbane man has then assaulted the Prahran man, who sustained a minor leg injury.
"The 30-year-old Brisbane man and a 27-year-old Brisbane man are currently assisting police with inquiries.
"As the investigation is ongoing it would be inappropriate to comment further at this stage."
It is understood the Rebels squad were also at the hotel for a team dinner but no Melbourne players were involved in the incident.