Chan climbed on the stage and then exchanged insults with the audience during Lee's July 10 concert. The Ming Pao Daily News quoted Chan, star of the "Rush Hour" movies, as saying onstage that he was drunk.
The 52-year-old action star was filmed by an audience member, apparently by a cell phone. The footage was posted on the video-sharing YouTube Web site.
The video showed a surprised Lee asking Chan, "How come you came up?"
When audience members began yelling for Chan to get off the stage, Chan responded with a Cantonese insult. As he prepared to sing, Chan motioned Lee's band to start playing, then abruptly stopped the music. The crowd eventually applauded after Lee and Chan began singing a duet.
Chan had been an invited performing guest at Lee's July 9 concert. Meeting with reporters after a promotional event Sunday for his new film, "Rob-B-Hood," Chan was initially reluctant to address the incident, but later apologized.
"I was wrong. I shouldn't play with my friendship with Jonathan Lee in public," he said. "I apologize to Jonathan Lee and I apologize to the audience that night."
Asked about the video footage of his disruption, Chan said: "I don't care. I'm not a saint. I'm an ordinary person."
Separately, Chan said he is set to film "Rush Hour 3" this summer. He said filming will take place in France, New York and Los Angeles.