The England and Wales Cricket Board has apologised and says it will investigate after police were called to intervene following a noise complaint at the team hotel in Hobart.
Players and staff from both sides got together on Sunday night following Australia's 4-0 Ashes win, which was confirmed when they thrashed England by 146 runs on day three of the final Test.
A video clip emerged appearing to show England captain Joe Root, bowler James Anderson and Australia trio Nathan Lyon, Alex Carey and Travis Head sitting quietly at a table filled with beer bottles.
The group dispersed when told to do so and no further action will be taken by local police.
Sky Sports News understands England assistant coach Graham Thorpe filmed the video.
An ECB spokesperson said: "During the early hours of Monday morning, members of the England and Australia men's teams shared a drink in the team areas of the hotel in Hobart.
"The hotel management received a noise complaint by a hotel guest and, as is commonplace in Australia, the local police attended the scene.
"When asked to leave by hotel management and the Tasmanian police, the players and management in question left and returned to their respective hotel rooms. The England party have apologised for any inconvenience caused.
"The ECB will investigate further. Until such times, we will make no further comment."
A statement from the local authorities said: "Tasmania Police attended the Crowne Plaza Hobart on Monday morning after reports were made of intoxicated people in a function area.
"The guests were spoken to by police just after 6:00am and left the area when asked. No further action will be taken by police."
In the footage, one of the police officers is heard to say "you're too loud, you've obviously been asked to pack up" and "time for bed".
England's men's squad will fly home from Australia this week after a chastening Ashes series, which saw them lose heavily in Brisbane, Adelaide, Melbourne and Hobart and only avoid a 5-0 defeat by clinging on for a draw on the final day of the fourth Test in Sydney.
England Women all-rounder Nat Sciver was asked about the emergence of the video during a pre-series press conference ahead of the Women's Ashes, which starts in Adelaide on Thursday.
"I've got no idea what [England men's] rules are that they've been living under and what they need to do to go home," said Sciver.
"If one of them got Covid and then had to stay here for 10 days, then that would be a nightmare and maybe something that shouldn't have happened. Everyone likes to have a drink at the end of a tour - maybe in a better setting would have been better, I don't know.
"In days gone by, when there wasn't Covid, players from different teams would enjoy a drink at the end of a tour and it would be a fairly normal scene, so it's a hard one."