Police were called to the incident in Dean Street, Kangaroo Flat, about 9pm on Saturday.

It is understood an ongoing dispute between the two neighbours flared up when one parked his vehicle on the nature strip of the other.

Police received several calls from onlookers when the 41-year-old made threats to kill.

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While they were en route to the address, police allege the man grabbed a small kitten belonging to his neighbour and with his bare hands removed the head and threw it across the road.

The incident was witnessed by onlookers, including children playing nearby.

When police arrived the man was found in the street.

He was initially charged with drunkenness.

When police found the cat, more charges were laid – aggravated animal cruelty, criminal damage and threats to kill.

The man was bailed to appear at the Bendigo Magistrates Court on March 23.

Acting Sergeant Mick McCrann attended the incident on Saturday and said he was disgusted by what he saw.

“It’s an absolutely horrific thing to do in front of people,” he said.