The People for the Ethical Treatment of Animals (Peta) has apologised and paid a family almost $49,000 after taking and euthanising a little girl's pet chihuahua.

Two people affiliated with the group travelled to the mobile home park because they said they had been asked for help picking up wild dogs and feral cats.

They removed an unattended chihuahua called Maya, which was a Christmas present to nine-year-old Cynthia Zarate.

Her father, Wilber Zarate, from Virginia, sued the company after it picked up his daughter's dog from the mobile home park and putting it down before a five day grace period was up.