Internet sensation Clare Werbeloff, instantly famous for her eyewitness account of a shooting last weekend in Australia, has admitted she fabricated the story.

The Sunday Telegraphreveals the 19-year-old told investigating police that she "made the whole thing up."

"We've spoken to her, but she's not a witness to the shooting," a senior Kings Cross officer said.

"She's told police that she didn't actually see it."

In an interview with Channel Nine immediately after the shooting, Werbeloff gave a vivid account which was posted on YouTube and attracted more than 200,000 views.

"There were these two wogs fighting," Werbeloff told Channel Nine. "The fatter wog said to the skinnier wog, 'Oi bro, you slept with my cousin.' And the other one said, 'Nah man, I didn't for s***, eh' and the other one goes, 'I will call on my fully sick boys, eh.' And then pulled out a gun and went: Ch-k ch-k boom!"

But her detailed eye-witness account was false.

As Werbeloff's newly hired agent, Adam Abrams, confirmed, "She was not a witness. She saw the camera, ran over to it and told this story."

Abrams said Werbeloff had gone into hiding after having media camped outside her home.

She has also signed a contract with Channel Nine's A Current Affair and is likely to appear Monday night. Abrams denied she has received payment for the interview.

"She wanted to get the truth out there after the police contacted her about being a witness," Abrams said.

On Friday the footage was attracting more than 17,000 viewers an hour on Channel Nine's MSN Web site.

A parody dance song was created using her quotes, while T-shirts and mugs emblazoned with her words and image were being sold just a day after the clips were uploaded.

The day after the shooting, Werbeloff wrote on her Facebook page, "You all got Punk'd" — adding later, "I can't believe how big it's got. It's a joke."On Wednesday she added: "Got a little too loose in the Cross on Sat ha ha enjoy my clip."

The shooting victim, Justin Kallu, 27, said earlier this week, "I'm just a bit upset about the fact that I've been shot and that I almost lost my life and there's this girl all over the news getting popular all because she has no brains."

Click here to see Werbeloff's original eye-witness account at News.com.au.