It might be the towing from hell but it's completely legal

A Sydney car owner might think twice about parking illegally next time after video emerged of a car being noisily dragged through the city's streets by a towing company.

A cyclist captured the towing on a GoPro camera and uploaded the footage to YouTube on Sunday.

In the footage the towed car with its handbrake deployed can be heard screeching along Elizabeth Street near Sydney's CBD before it comes into shot.

Annoyed bystanders watch the passing car being dragged along as it makes a squealing sound so objectionable it could be used to extract information from prisoners.

Despite accusations of noise pollution the company in question, North Shore and City Towing, said the towing manoeuvre was completely legal as the car had been illegally parked in a clearway.

"In that case, the car owner had left the handbrake on and as the car was locked our driver had permission from NSW Transport Management to tow the car like that," a spokeswoman told ninemsn.

A Sydney mechanic contacted by ninemsn said while a car could suffer wear to rear tyres or brakes after being towed with its handbrake on it would not significantly damage the car.

North Shore and City Towing said the driver had not contacted the company with any complaints.

A spokesman from NSW Transport Management could not confirm that permission had been granted but said any car illegally parked in a busy street such as Elizabeth Street could legally be towed with its handbrake on "across the shortest possible distance".