Troubled media tycoon Antony Catalano and his estranged wife have been spotted in a tense exchange on a suburban street, just months after he was accused of assaulting her.

Catalano, the co-owner and former chairman of Australian Community Media, and his wife of 14 years, Stefanie, were reunited on Thursday on a street in the ritzy Melbourne suburb of Kew.

The couple, who were previously reported to be estranged, have four children together. Catalano, 59, also has five older children from his previous two marriages.

Stefanie was dressed in blue jeans and white sneakers, and kept her hands inside the sleeves of her oatmeal fleece during the chilly reunion.

Catalano, who sources say is fighting for his marriage after leaving rehab, donned a white jumper, olive trousers and brown loafers while carrying an iPhone, earbuds and a black diary.

They appeared to be locked in a serious conversation as they walked around the suburb, eventually stopping in the street while Stefanie checked her phone.

The pair arrived and left in separate cars. On Friday, three insiders familiar with the Catalanos indicated they had reconciled.

It was a far cry from the lavish life they had together - one that shattered the night Catalano allegedly held a clothes iron to his wife's head and dragged her by her hair at their $30million St Kilda penthouse on March 13.

Melbourne Magistrate's Court previously heard the scene allegedly unfolded when Catalano arrived home from a 40th birthday dinner while high on drugs and started yelling at Stefanie while she was in bed.

He allegedly demanded her phone, before he dragged her by the hair and ankles through different rooms and hallways until they got to a laundry and he held a clothes iron near her head.

The court heard she was screaming for help and managed to escape, but was allegedly dragged back inside by her hair as she waited for the elevator.

He allegedly told her: 'If you scream one more time I'll stab you to death.'

Stefanie allegedly went to hospital with a fractured tailbone, before she fled to Canada with their children to escape the spotlight. 

Catalano faces charges of assault, false imprisonment and making threats to kill, and has since spent time in rehab to address substance abuse issues. 

In April, the Daily Mail reported that in the lead-up to the alleged assault on his wife, Catalano was seen 'hobnobbing' trackside at the Formula One Grand Prix with a woman who was visiting from Sydney.

The two later had dinner together at France-Soir, a well-heeled South Yarra institution that Catalano was known to frequent with Stefanie.

The Daily Mail does not suggest Catalano having dinner with the woman was anything other than an innocent meeting, nor that it was connected to events that followed. 

After his arrest, Catalano said he was 'deeply ashamed and humiliated' and stepped down as executive chairman of Australian Community Media.

At the time, he said: 'Those close to me have been urging me to seek professional help for some time and there have been interventions by close family and friends.

'I regret not heeding their advice and I continued to believe I could hide my mental health issues. 

'I allowed shame and pride to prevent me from confronting these problems and seeking treatment earlier.'

Earlier in June, he successfully applied to the court to vary his strict bail conditions to allow him to visit his family in Byron Bay - on the condition he remains sober.

The pair met at The Pantry café in Brighton during his second marriage to Shara, when Stefanie was just 20.

She was working as his receptionist when their relationship began. 

There's no suggestion he cheated on Shara, only that he met Stefanie while married.  

In the weeks before Catalano was charged, his town planners were preparing fresh documents for a contested multimillion-dollar development at Byron Bay.

The plans for a two-house family compound on the more than 4,000-square-metre property would make it the largest home on the millionaire strip on Wategos Beach.

Catalano has an extensive property portfolio further south, including the penthouse in St Kilda which was listed for sale for $30million before the alleged assault.

His five-bedroom apartment in Victoria's snowfields is also up for sale with a $9.5million price tag.

Catalano resigned as chief executive of the Domain real estate classifieds group in 2018 and bought Australian Community Media with billionaire investor Alex Waislitz the following year.

ACM's titles include the Newcastle Herald, Illawarra Mercury, Canberra Times and The Examiner in Launceston.