Two men have been arrested on suspicion of the distribution of written material with intent to incite hatred.
Detectives investigating an allegation that National Front leaflets have been distributed in the Tates Avenue area of South Belfast took the pair in for questioning.
A PSNI spokeswoman said the suspects, who are aged 33 and 49 years, are helping with inquiries.
SDLP South Belfast MLA Conall McDevitt said the leaflets were brought to his attention on Saturday by a number of concerned residents.
"I reported it immediately to the police who then initiated their investigation. Following this I tweeted about the incident, with the agreement of the PSNI, in an attempt to gain information," he said.
"I felt compelled to do so because I was appalled at the distribution of such abhorrent leaflets in what is a very tolerant and cohesive community.
"I welcome the swift and decisive actions of the people in south Belfast who then passed on information to the police.
"This sends out a very clear message that this is a community made up of a proud, tolerant and diverse range of people who will not accept discrimination in any form.
"Leaflets with this offensive and overtly racist tone have no place in the streets of South Belfast.
"I commend the community for standing up against those responsible for such unacceptable material."