'Creepy gnome' stalker terrifies South American town!

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Melbourne, Mar 12 : A village in South America is living in constant fear of a creepy gnome after several sightings were reported of a midget stalking the streets at night.

The midget - which wears a pointy hat and has a distinctive sideways walk - was caught on video by a terrified group of youngsters, reports The Sun.

Local teenager Jose Alvarez claimed to have filmed the gnome on his mobile phone while chatting to friends in the middle of the night.

"Suddenly we heard something - a weird noise as if someone was throwing stones," The Daily Telegraph quoted Alvarez, as saying.

"We looked to one side and saw that the grass was moving.

"To begin with we thought it was a dog but when we saw this gnome-like figure begin to emerge we were really afraid," he said.

The grainy footage shows a dark figure slowly moving across a street.

Alvarez said other locals had also seen the strange figure.

"This is no joke. We are still afraid to go out - just like everyone else in the neighbourhood now," he said.

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