By James Rothwell 6:53PM GMT 21 Feb 2016

Up to 30 drunken onlookers clapped and cheered as a former hotel, which was being converted into an asylum seeker refuge, caught alight in Bautzen, Saxony

The German government has condemned a "disgusting" incident where anti-migrant mobs "celebrated with unabashed shame" in front of a burning refugee shelter.

Up to 30 drunken onlookers are said to have clapped and cheered as a former hotel which was being converted into an asylum seeker centre caught alight in Bautzen, Saxony.

Police say they are investigating the incident as a possible arson attack as they found traces of a "fire accelerant" in the building.

Some members of the mob also tried to stop firefighters from putting out the fire, a police spokesman added.

The group "showed unabashed delight and made disparaging comments" about the firefighters' efforts to contain the blaze, he added.

Two 20-year-old men have been detained after the incident, in which no one was injured.

"Those who shamelessly applaud when houses burn and scare refugees to death are displaying disgusting and revolting behaviour," Justice Minister Heiko Maas tweeted on Sunday afternoon.

According to the local newspaper Sachische Zeitung, the shelter would have housed up to 3900 asylum seekers.

"It was sheer terror," said Heinrich Schleppers, a local councillor, "it is the sort of thing you just see on the news, but now it has happened in our town."

"If the perpetrator wanted to create fear by doing this then he has succeeded in his aim."

Another resident said: "I was woken up by a very loud noise. I am a child of war, this brings back bad memories."

Anti-migrant mob in Germany 'cheered' as refugee shelter burned in front of them - Telegraph