When Ogilvy challenged Allenby to put his hand up and just admit he played poorly things got heated.
A witness told AAP that Allenby invited Ogilvy "to step outside and settle it''.
At least one glass was smashed during the argument before Allenby stormed off.
"It was just two guys who'd had a few tough weeks letting off some steam and getting some things off their chest,'' said Allenby's manager Tony Bouffler.
"It appears from what I've heard things may have been blown out of proportion. They're good mates and they're still good mates.
"They've supported each other on the Tour for years and I'm sure they'll continue to do so in the future.''
Allenby, who jetted off to the US on Monday as the drama came to light, had been involved in a dramatic three-man sudden-death play-off with Marcus Fraser and eventual winner, Greg Chalmers, only hours before he and Ogilvy exchanged some strong words.
Ogilvy's manager Paul Galli declined to comment on the incident.
However, Hyatt Regency general manager Maurice Holland told AAP on Monday he heard about the incident but added there had been no report and hotel security had not been involved.
"As far as we're concerned it was nothing serious, just a bit of a tiff,'' said Holland.
After completing his first round of the Australian PGA last Thursday, Allenby bristled when he was questioned further over his poor Presidents Cup performance.
Allenby noted that Ogilvy had "hit me in the tree three times off the tee and I had to chip out three times'' in Saturday's foursomes.
"Everyone's making me look like I'm playing like s**t and then it starts wearing on your mind a little bit, maybe you are,'' said Allenby.
