A NEW sighting of South Americas creepy gnome has caused panic among locals after a group of youngsters claimed a midget monster ran towards them at night.

The teens who recorded footage of the freaky being on their mobile phone said they are now too terrified to go out at night.

Experts who examined the latest footage, taken in the town of Clodomira, province of Santiago del Estero, Argentina, last week, say it is credible.
But sceptics say the sidestepping gnome could be a speedy child or even a small animal.

Last weeks footage was taken by Juan Carlos Roldan, his brother Javier and five friends, who were larking around by the water fountain in Clodomira.

Juan, who filmed the creature, referred to it as something that looked like a dwarf.

He said: It was walking sideways and was wearing dark clothes. But it was impossible to see its face because its face was covered in shadows.

One of the lads, who were aged 15-22, yesterday told Argentinean reporters: We were messing about - singing and dancing - when we heard a loud rustling noise from behind us.

This tiny thing started running down Avenue San Martin at us. It had a pointy head and dark clothes.

It was a person of incredibly low stature. We filmed it then got scared and ran off.

This little thing was barking like a dog - but running sideways on two legs. It headed off towards the football stadium.

Juan added: We stopped for a while around a block away from where we saw it. Then we returned and picked up the pieces of clothing that we had left behind and our bikes too but we didnt see anything else.

Photographic expert Aldegonda Alvarz, of Universidad Nacional de Santiago del Estero, yesterday said: This video footage seems credible. We could be looking at another petido orejudo - small being.

The Suns video of a creepy gnome recorded in Argentina last March caused millions to be stunned around the world.

It sparked hundreds coming forward to report similar sightings while a towns mayor and police chief admitted they had known about the creepy gnomes existence for 20 years.

Teenager Jose Alvarez first caught the creature on film while larking about in his hometown of General Guemes, in the province of Salta, Argentina.

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

"One of my friends was so scared after seeing that thing that we had to take him to the hospital."