A 'demon worship' statue has been removed from a Bangkok hotel following complaints from religious locals.

The menacing Khru Kai Kaeo sculpture, with its sharp crimson nails and golden fangs, was moved to The One Ratchada night market after an order from the State Railway of Thailand.

It was originally placed at the entrance of the Bazaar Hotel, and had stirred controversy as residents believed it encouraged 'un-Buddhist' practices.

The State Railway of Thailand had fined the hotel 1.3 million THB (38,015 USD) for violating the Building Control Act, and ordered the statue to be removed by December 30.

Following the relocation, the front area of the hotel will now be transformed into an activity space for guests, catering to its foreign clientele.

The 'Khru Kai Kaeo' statue was erected in August, but sparked controversy when the Council of Artists Supporting Thai Buddhism called on the Bangkok Metropolitan Administration to remove it, alleging that it promoted demon worship.

Concerns were raised about Khru Kai Kaeo worshippers endorsing 'un-Buddhist' practices including animal sacrifice.

Thailand, formerly Siam, is a predominantly Buddhist country. The religion stems from the Khmer Empire, which covered much of Southeast Asia.