The video footage of the incident at the Clarion Hotel in Liffey Valley was shown on Channel Ten in Australia and provoked public anger.
Newspaper websites have received large numbers of messages condemning the treatment of the animal and criticising the Irish partygoers.
"Absolutely disgusting. Ireland should be embarrassed," said one irate Australian.
The backlash began as fears grew that the animal's body had been dumped in the Dublin mountains.
Sources have claimed that the animal's remains were disposed off after the furore over its treatment grew during the week.
Meanwhile the owners of a circus based in Lucan have confirmed that they have been questioned by gardai about the incident.
However, Yvette Scholl said that while gardai had interviewed circus owner Alexander Scholl directly about the wallabies early in the week there now appeared to be no more questions to be answered.
"We have had no more questions from gardai, and nobody who came to our circus yesterday asked anything about it," said Yvette Scholl, wife of the circus owner.
"We now think that the suspicion that the poor animal came from here is finally over," she added.
Animal welfare organisations and the gardai are continuing to investigate rumours that a wallaby or small kangaroo was brought to a birthday party at the Clarion hotel in Liffey Valley and released onto the floor in front of crowds of people and loud music.
There have also been reports that the animal died after being fed drugs in the sick stunt.
Australians expressed outrage at the treatment of a wallaby in a Dublin nightclub.
Experts say the treatment would have inevitably led to the death of the animal as kangaroos and wallabies can become stressed and die quickly.
"There is no way I would give one of my wallabies to someone to bring to a nightclub," Alexander explained.
"With loud music and people drinking it would be cruelty for such an animal. It's sad someone thought it a good idea."