Hundreds of Muslims have rallied in Sydney to protest negative media coverage of Islam and French magazine Charlie Hebdo's depictions of the Prophet Muhammad.

Police said 14 people were moved on from the rally on Friday night for breaching the peace. But no one was charged and the event was peaceful.

Some of the 800-strong demonstrators in the Muslim enclave of Lakemba in Sydney's west held placards with the slogan "Je suis Muslim," French for "I am Muslim."

The slogan was a response to Charlie Hebdo's latest front cover that depicts a tearful Prophet Muhammad holding a sign saying "Je suis Charlie." The edition is the first since the Jan. 7 terrorist attack on the satirical publication's Paris office that left 12 dead.