Three people have been arrested after an alleged arson attack on an iconic Melbourne CBD bar.

Police were notified when Melbourne City Council staff spotted a suspicious vehicle on safety cameras near the corner of Flinders and AC/DC lanes.

When police arrived at the scene they found the late night venue Bar Bambi on AC/DC Lane ablaze.

It's the second time in a week the bar has been attacked but the owners have vowed to reopen tonight.

The bar was filled with revellers into the early hours of the morning.

At 5am arsonists smashed through the entry and tried to set the venue alight.

The trio behind the attack were spotted driving a Toyota ute suspiciously on city CCTV cameras and quickly caught.

It's the latest venue to be torched in a spate of underworld attacks targeting alcohol distributors and hospitality venues.

The bar, owned by businessman Nick Russian, was smashed into exactly a week ago.

It is one of several high-profile hospitality venues to have been targeted this month including Soho bar The Men's Gallery and The Albion.

Nine News understands a new crime syndicate is believed to be behind the spree with possible links to Middle Eastern crime gangs.

Police are investigating whether the gang's objective is to get a stronghold on the booze market through scare tactics and extortion, including violent kidnappings.

Victoria Police have vowed to bolster security.

Sally Curtain, CEO of Victorian Chamber of Commerce said other venues are "increasing security."

NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.

Download the 9NEWS App here via Apple and Google Play
Make 9News your preferred source on Google by ticking this box here
Sign up to our breaking newsletter here

Alleged arson attack on Melbourne CBD bar