A mother noticed the Islamic State terrorist figures inside a 'Falcon Commandos' set that had been bought for less than $2 by her youngest son from a store in Taiping, north of Kuala Lumpur.

The serial number on the box has been traced back to a manufacturer in China, Berita Harian reports.

The 'Falcon Commandos' fake Lego series pits counter-terror police against black-clothed Islamic State figures , commonly known as mini-figs, and what appears to be the ISIS flag.

One ISIS mini-fig set pictures an Islamic State jihadi armed with a chainsaw and a bloodied head at his feet.

Another contains a masked figure tossing dynamite and a catapult capable of launching crude incendiary devices.

Nine.com.au has viewed the 'Falcon Commandos' series on a major Chinese online retailer which states it will send the terrorist sets to Australia.

The sets are recommended for children aged six and over.

US manufacturer BrickArms produced an Usama bin Laden figure in 2008. Source: Supplied

Malaysian mother Mahnun Mat Isa, aged 40, said she had reported the toys to police and an Islamic council.

"I ask the authorities to not freely allow the entry of toys that touch on religious sensitivities in this country," Ms Mahnun, a school teacher, told Berita Harian.

"What's more shocking is that the terrorist character resembled a man with a head cloth.

"I came to know about it when my son who was playing with the toy showed me the 'terrorist' character holding a banner which displayed the words 'Allah' and 'Muhammad'."

Lego, a Danish company founded in 1949, has long been under siege from sets manufactured in China which are masquerading as the real thing.

The 'Falcon Commandos' counterfeit set is not the first time Lego has had to deal with copycat terrorist sets.

In 2008 a US manufacturer called BrickArms caused outcry by releasing an Usama bin Laden figure carrying an AK-47 and wrapped in a belt of grenades.

BrickArms, operating out of Richmond, Washington, have also previously issued an Nazi SS officer and Stormtrooper.