The 25-year-old was taken to hospital from Pink Punters in Milton Keynes, Buckinghamshire just after 11pm yesterday, Thames Valley Police said.
His condition has since improved at Milton Keynes Hospital and he is now talking to staff. Officers said they will work with the local council to investigate the safety of the event.
The 25-year-old accidentally hanged himself at Pink Punters nightclub in Bletchley, near Milton Keynes
The owner of the club, which attracts gay, lesbian, bi-sexual and transgender people, said it was a 'freak accident' involving a low-hung prop that had been safely used for several years.
Superintendent Barry Halliday said: 'I appreciate that this incident may have caused some concern in the community. However, I would stress that it appears to be a tragic accident and is not any type of hate-related crime.
More..'Fortunately, the man's condition has improved considerably in recent hours. Police will work with the local council and other partner agencies to investigate the safety of the event.'
Club owner Frank McMahon said: 'There was an accident involving a Halloween prop which had been in use for several years at the club. It is a safe system.
'It's just a rope with a large noose which doesn't go tight around the neck. People use it so they can have photographs taken. We've never had a previous incident with it.
'It's one of several props that we use, and is low down to the ground. We do have an excellent safety system in place and we believe it to be a freak accident.'
I LIKED THE BIT ABOUT , THE LOW HUNG PROP????????????????????? IS THIS A CHEAP ADVERT OR SOMETHING?????????
Pink Punters in Milton Keynes,