Neo nazis in Germany are using Sesame Street's Cookie Monster to recruit children into far-right extremism, according to reports.

In the latest incident, 31-year-old Steffen Lange was arrested for handing out neo-Nazi pamphlets outside a school in Brandenburg dressed in full Cookie Monster costume.

Following a raid on the homes of Lange and his accomplice, police discovered more recruitment leaflets and far-right material featuring the Cookie Monster.

One image found on one of the suspect's computers included a picture of the Cookie Monster standing next to Adolf Hitler with the caption "Who ate my cookie?".

A Brandenburg police spokesman: "There is nothing humorous about far right ideology despite the fact they are trying to trivialise it by getting the Sesame Street character involved.

"It's an attempt to make it seem harmless and everyday and perhaps a bit of fun and a bit rebellious."

This not the first time the far right has used a cartoon character to promote their ideology. In May 2013, The National Socialist Underground released a Pink Panther cartoon claiming responsibility for a series of racist murders in Germany.