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Watch: 'Cantankerous old' rescue dog's escape down Bay of Islands thoroughfare prompts laughter around the world

A rescue dog named Lily from the Bay of Islands has become an overnight internet sensation after her wily escape down Kawakawa’s main street – with a giant flag in tow — put smiles on tens of thousands of Facebook users' faces.

CCTV footage of the freedom-seeking furball's runner — accompanied by Yakety Sax, the song made famous by the Benny Hill Show — has been viewed more than 320,000 times in the first 16 hours since it was posted last night.

Lucie Green, a volunteer with Bay of Islands Animal Rescue, was taking the basset hound for a walk last week when she decided to stop at a local business to buy Lily a treat.

But the dog wasn't interested in waiting to see what surprise might be in store, instead bolting despite being tied to the large Coca-Cola flag.

"It wasn't until I saw the video that I realised I had charged into oncoming traffic, which is quite alarming, but I just wanted to get hold of her before someone hit her," Ms Green told the New Zealand Herald today, describing the nine-year-old as a "cantankerous old lady".

"After taking her home I realised I still had to return the flag and pay for my sausage," she added. "I couldn't believe it."

Ms Green changed her Facebook profile picture to show Lilly late last night as the video, posted by user James Mcdonald, quickly started to take on a life of its own.

Thousands of people have since commented on the video, with many of them admiring the dog’s spirit.

"I'm laughing my guts out it's so funny," wrote Facebook user Annie Hicks.

"Crack up go doggie," added user Katie Bennett.