A 2.5 METRE croc has been spotted stalking a Fannie Bay family’s 10-month-old dog during an early morning walk.

Ned the blue heeler ran down to the water to play at Vesteys Beach with his owner Karen at 6.20am on Wednesday.

Karen quickly noticed a snout about 1.5m from the shore and coaxed her dog away before the croc could get close to her pet.

She said Ned didn’t notice that a hungry saltie was just metres from him.

“He loves to surf the waves and would have got right in the thick of it had we not got him out of there,” she said.

“He (the croc) was certainly pretty focused on Ned and showing a bit of interest.”

As they walked down the beach the croc continued to follow them.

Karen said she and her partner had been visiting the beach for years and had never seen a croc at the beach.

She said they weren’t surprised to see the croc as they had noticed an odd movement in the water the day before.

Karen said she reported the sighting to authorities