Traditional nursery rhyme Baa, Baa, Black Sheep has sparked a debate over political correctness after a kindergarten changed its lyrics due to racial implications.

Staff at a school in Melbourne's east have expressed their concerns over the connotations of 'black', which has now been altered to mirror Australia's multicultural society.

Teachers were also troubled by the line 'one for the little boy who lives down the lane', which they believed had sexist overtones and has since been adjusted, the Herald Sun reports.

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Concerns over the racial connotation of 'black' in the nursery rhyme - Baa, Baa, Black Sheep - prompted the kindergarten teachers to change its lyrics

The school, which has not be named but is located in Melbourne's east, sparked a debate over political correctness for adjusting the lyrics to the tradition rhyme

Staff at the school were also troubled by the sexist implication of the line: 'one for the little boy who lives down the lane'

A director of a nearby centre, Bubble Pre-School in Malvern East, says the racial context purely comes from the adult's perspective.

'The kids don't think about that at all when they sing the rhyme,' Roula Tsoukalas told Daily Mail Australia.

'Of course we teach tolerance and acceptance at our school but the song has no focus on the colour itself. From an educational point of view, the repetition of the "b" helps children sound the words correctly.'

Ms Tsoukalas says Baa, Baa, Black Sheep is 'a classic' and one that is popular among her pupils.

'We often get the kids to choose and they love to sing it all the time,' she said.

'I guess it's also a familiar one for them because many of the kids sing it at home because their parents have also grown up with it.'

A spokesman for the Department of Education and Early Childhood Development told Daily Mail Australia they do not decide on what is taught at early childhood centres.