Police are appealing for public assistance following an armed robbery at a Northcote hotel early this morning.

Detectives have been told that a balaclava clad man ran into the hotel through the smoking area on the corner of St Georges Road and Merri Parade around 3am.

The offender, allegedly armed with a firearm, approached staff and made demands for cash.

Staff complied and the bandit fled the scene with a substantial amount of cash. He was last seen running through nearby parkland.

The man is described as 180cm tall with a thin build. He was wearing a blue cap and balaclava with a black windcheater, blue pants, white runners and blue gloves.

Investigators have released an image of a man that may assist with their enquiries