An image of the incident on the streets of Cairns. (Supplied)

An image of the incident on the streets of Cairns. (Supplied) Source: Supplied

A disturbing video showing Queensland police arresting an Aboriginal teenager has sparked a review of the incident, police have confirmed.

Queensland police have launched a review after a video emerged online of a group of officers physically detaining a distressed Aboriginal teenager in Cairns, as a crowd of onlookers calls on them to stop.

Police claim they suspected Dylan O'Connor had received stolen goods after he was handed a bag.

Mr O'Connor told NITV in a written statement the reason this was a problem was because the man who handed him the bag was an African male.

"Walking with my mates to Woolworths in the city, Cairns police officers arrested me because it looked suspicious that a bag was handed to me by an African male," Dylan said.

"They checked my bag and of course it wasn't stolen, it was my property, the police officers began to grab me and force my arm into a uncomfortable position and arrested me. After being in the paddy wagon for 15 minutes two different officers came to me and said they were sorry for the whole situation it was a mistake and I was free to go."

Dylan also posted his version of events and video taken by an onlooker on Facebook.

A spokesman for Cairns police told NITV News in a statement: "Police were investigating suspected stealing offence - however due to insufficient evidence, the person detailed was not charged."

The police spokesman did not explain the reason police first suspected Dylan, but said police had been trying to contact him to see if "he had any concerns regarding the actions of the officers."

Dylan says the police have not contacted him.

"This isn't acceptable I am 17. Useless bullies hiding behind the uniform they wear to serve and protect."

He also said there would be a review of the officers body worn cameras footage of the incident.

Dylan accused the officers of bullying tactics.

"This isn't acceptable I am 17. Useless bullies hiding behind the uniform they wear to serve and protect."