German police have arrested a second soldier over a far-right plot to assassinate politicians and blame it on migrants.

The suspect, identified only as Maximilian T., 27, was stationed at the same Franco-German base near Strasbourg as army lieutenant Franco Albrecht, who was arrested on April 26.

Albrecht, 28, had managed to create the false identity of a Syrian fruit seller from Damascus and to register himself as a refugee who was granted asylum, a space in a shelter and monthly state benefits.

Their plan, prosecutors claim, was to commit an attack, for which they had obtained a pistol and drawn up a hit list of pro-refugee politicians, including former president Joachim Gauck and Justice Minister Heiko Maas.

The pair, along with 24-year-old student Mathias F., had hoped the murder would 'be seen by the population as a radical Islamist terrorist act committed by a recognised refugee,' said a statement from the prosecution.

Their plan, prosecutors claim, was to commit an attack, for which they had obtained a pistol and drawn up a hit list of pro-refugee politicians, including former president Joachim Gauck

Prosecutors said the three suspects 'planned an attack against a high-ranking politician or public figure who was supportive of what the accused saw as the failed immigration and refugee affairs policies'.

Albrecht 'was meant to carry out the attack' and had created the fictitious identity of a refugee who was meant to be seen as the perpetrator.

Maximilian T., who served in the same infantry battalion, allegedly made excuses for him during his absences from the Illkirch base, just across the border from Kehl in France.

He apparently penned the death list, and helped Albrecht procure the French-made handgun in Vienna, prosecutors said.

News portal Spiegel Online said the newly-arrested suspect was also a lieutenant and a close friend of Albrecht, and that both were part of an online chat group in which they shared right-wing extremist content.

The pair also allegedly traded Nazi photos and far-right speeches online.

One investigator told Spiegel: 'They were prepared to kill for their cause, or at least that's what they claimed.'

After Albrecht's arrest at a Bundeswehr barracks in French Alsace, investigators said they found a lounge where he and like minded officers shared their enthusiasm for the Nazi Wehrmacht.

They called their retreat the 'bunker' and there they stored pictures romanticizing World War Two German troops alongside original steel helmets, guns and medals.

Defence Minister Ursula von Der Leyen (pictured) this week ordered the army's inspector general to search every army barrack, storeroom, munitions depot and training area in a bid 'to restore the reputation of the Bundeswehr'

The case is particularly shocking for the military leadership, because German soldiers have only been stationed in the Leclerc barracks in Illkirch since 2010, so there are no historical roots to the Wehrmacht.

'Anyone who decorates an entire room with devotional objects in such a barracks must be deeply convinced,' said Germany's MoD in Berlin.

In 2012 at the site soldiers made a huge four foot swastika on the ground outside a training site.

Defence Minister Ursula von Der Leyen this week ordered the army's inspector general to search every army barrack, storeroom, munitions depot and training area in a bid 'to restore the reputation of the Bundeswehr.'

She has come under fire for her handling of the case, with some saying her harsh tone towards the armed forces implied most soldiers were right-wing radicals.

Chancellor Angela Merkel defended the minister today.

She told the broadcaster WDR: 'This is an unbelievable story with a right-wing extremist background and it was right that the defence minister did not try to minimize it but rather called it what it is, and we say we have to investigate whether such thing occurs often.'

Von der Leyen has apologized for her blanket criticism of the military, saying she regretted remarks that military leaders were weak and unable to deal with problems like sexual harassment claims and right-wing extremism.

The scandal has also raised questions about the competence of staff at shelters where migrants first register before they can apply for asylum.

Germany has taken in more than one million asylum seekers since 2015, many from Syria, Iraq and Afghanistan, amid an initial wave of goodwill followed by an anti-foreigner backlash and a spate of racist hate crimes.