A glittering Vegas-style strip club in Melbourne's CBD is allegedly a seedy underground den where drug use was rife.

The ex-boyfriend of a former dancer from the Dreams Gentlemen's Club, where British backpacker Stacey Tierney was found dead in December, claims drugs were used heavily and female entertainers were treated horrifically.

Josh* was dating a Dreams dancer for more than 12 months, and spent his evenings at the bar, partying with managers, security and entertainers, he says.

He told news.com.au illicit drugs such as MDMA and cocaine were passed around and were easy to source. Josh would whisper to a staffer and he'd have a supply for the night.

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"If they didn't have any, they would call someone to come in and deliver it," he said.

"The person who delivered it was quite experienced obviously and had his own bodyguard."

Victoria Police is investigating whether drugs were used the night before Ms Tierney's body was found on December 19, 2016.

The fitness fanatic, who had dreams of becoming a nurse, moved to Australia from Manchester in the UK three years ago. She was a tabletop dancer at the club and police suggested she was partying at Dreams after it closed, with several men who had after-hours access.

The grim discovery of her body was made 12 hours after the 29-year-old died, but the men possibly left the club after she died.

It is still not known how she died and whether drugs played a part in her death.

It is also unclear whether or not Ms Tierney's body was found in a private room.

"Drugs were freely able to be done in the bathrooms, VIP rooms, or the girls would do it upstairs," Josh said.

Stacey Tierney's family did not know she worked in strip clubs. Photo / Facebook
Stacey Tierney's family did not know she worked in strip clubs. Photo / Facebook

"There were parties upstairs with girls where there was no security footage and girls would be pressured into doing sex acts in return for drugs.

"The treatment of girls is particularly awful, although some girls have a good experience if they play by the rules."

Earlier this week a man was arrested as part of an investigation into the death of Ms Tierney.

Victoria Police arrested a 33-year-old man from Ascot Vale, in Melbourne's north west, on Tuesday and interviewed him on suspicion of perjury. He was released pending summons.

Since the arrest, it has been revealed a coroner is investigating the circumstances around the tabletop dancer's death.

Friends of Ms Tierney claimed they tried to talk her out of getting a job at the gentlemen's club but she couldn't resist the money.

A former dancer at Dreams, who had also moved to Australia from the UK, told British newspaper The Sun dancers could early up to $2500 a night working in strip clubs.

Dreams was slammed by dancers following Ms Tierney's mysterious death for deciding to still open for "Sexy Poker Tuesdays" the day after her body was found in the club.

The backpacker's devastated family back home in the UK had no idea the dancer was caught up in the seedy world of strip clubs.

Her uncle, Graham Tierney, previously told news.com.au he did not know what happened during Ms Tierney's final moments and whether she met with foul play.

"What I heard was that it was a private party inside the establishment when it would be normally closed and these alleged several men fled the scene without raising any concerns," Mr Tierney said.

"Then where were the staff (who) I assume would be serving them and who authorised the party?

Before her death, Ms Tierney was posting about her sunny life in Australia on social media, sharing pictures of herself wearing bikinis on the beach. She had claimed it was the happiest time in her life.

Dreams Gentlemen's Club did not respond to news.com.au's request for comment but following Ms Tierney's death it expressed its condolences. The club would not comment further at the time.

* Names have been changed