Australian soldiers have been photographed flying a Nazi swastika flag from their vehicle while on operations in Afghanistan.

The photo, obtained exclusively by the ABC, was taken in August 2007.

The photograph shows the large swastika emblem hoisted over an Australian military vehicle.

Two separate Defence sources have identified a particular soldier as the individual who took the flag to Afghanistan.

The ABC has confirmed the photo was taken in 2007. ( Supplied )

The ABC has obtained two separate expert analyses of the photograph.

Both concluded with a high degree of confidence — near certainty — that the image has not been digitally altered.

Other than magnifying the image and cropping its exterior margins, the ABC has not edited or manipulated the photograph in any way.

The ABC has seen a second photograph of the flag, and it is understood that further images of the flag in Afghanistan have also been circulated among Australian soldiers.

One Defence source who was aware of the flag being flown in Afghanistan in 2007 said it was a "twisted joke", rather than evidence or an expression of genuine neo-Nazism.

The source claimed the flag was up for a "prolonged period".

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Defence says flag was only up 'briefly'

Vice Chief of Defence, Vice Admiral Ray Griggs, said appropriate action was promptly taken.

"I think the important thing is the situation was dealt with quickly — the flag was removed," he said.

"And, what I can say we've learnt subsequently, is that when the patrol returned to its base, the flag was destroyed."

In response to questions from the ABC, a Defence spokesperson said: "Defence and the ADF reject as abhorrent everything this flag represents. Neither the flag nor its use are in line with Defence values.

"The flag was briefly raised above an Australian Army vehicle in Afghanistan in 2007.

"The commander took immediate action to have the offensive flag taken down.

"It is totally inappropriate for any ADF vehicle or company to have a flag of this nature.

"The personnel involved were immediately cautioned at the time and subsequently received further counselling.

"Additionally, steps were taken to reinforce education and training for all personnel who witnessed the flag."

Prime Minister Malcolm Turnbull slammed the conduct of the soldiers who raised the flag, saying it was "completely and utterly unacceptable".

"It was wrong, it was absolutely wrong and the commanders took action at the time," Mr Turnbull said.

Sorry, this video has expired Prime Minister Malcolm Turnbull said the flag was "utterly unacceptable".

'Slap in the face' to diggers who fought Hitler

Jewish Australian civil rights organisation the Anti-Defamation Commission said the photo was "deeply troubling" and stood as an insult to past Australian servicemen and women.

"The flying of the Nazi flag, the most evil symbol in the history of mankind, by our soldiers is a slap in the face to the diggers who fought valiantly and died to defeat Hitler," ADC chairman Dr Dvir Abramovich said.

"At a time of escalating anti-Semitism and intolerance, this vile display of bigotry is a reminder of the ever-present need for people of good to speak out against such abhorrence, and that racism is still rampant in parts of our society."

New South Wales RSL President James Brown echoed the ADC's comments.

"The decision to fly that flag is stupid, wrong and insulting to the members of the Australian Defence Force who fought against Nazism," Mr Brown told PM.

"We don't know whether that was a sick joke, misplaced gallows humour or something deeper… but there's no doubt that that shouldn't have happened and should not happen again."

Concerns about culture

The photograph has emerged as the actions of Australia's special forces in Afghanistan come under unprecedented scrutiny.

The ABC recently published claims in relation to the alleged killing of unarmed Afghan men by a different group of Australian special forces personnel during an operation in the village of Darwan, five years later in September 2012.

The Darwan revelations came after details of an explosive internal report commissioned by Defence were leaked.

The report, commissioned in 2016 and based on confidential interviews with special forces soldiers, said some of those interviewed felt that the cultural problems had developed because of weak leadership on the part of some special operations commanders who had "disregarded the telltale signs of dysfunction".

Chief of Army Angus Campbell earlier this year appeared to take steps toward culture change, ordering a ban on soldiers' use of "death-style" imagery, such as Spartan warriors, the grim reaper, skull and crossbones and the "Punisher" vigilante character.

Lieutenant General Campbell said use of such symbols is "always ill-considered and implicitly encourages the inculcation of an arrogant hubris and general disregard for the most serious responsibility of our profession: the legitimate and discriminate taking of life".