Police in Germany have arrested two US servicemen on suspicion of stabbing a local man to death, officials confirmed Sunday.

The incident took place Saturday night after a fight broke out at a funfair in the western town of Wittlich, the Trier Criminal Investigation Department announced on its website.

Local media reported that the 28-year-old victim was on his way home when a quarrel broke out and he was stabbed near his front door. He was the manager of a security service and was known as a martial artist in Wittlich.

The two servicemen were with two other people at the funfair and all four of them fled the scene following the stabbing.

The police said on their website that the suspicions against the two suspects had been substantiated.

The Trier prosecutor's office has handed over the case to US prosecutors in accordance with a NATO statute. It is now being handled by the Office of Special Investigations at US Airbase Spangdahlem, located not far from Wittlich.

The arrested men were handed over at noon on Sunday. Further details have not yet been released.

Wittlich Mayor Joachim Rodenkirch said in a speech at the market square that he was "horrified and terribly saddened by the brutal death of a young man" and offered his condolences to his family, Sputnik news reported.

The incident has cast a shadow over the traditional funfair in Wittlich, which also attracts visitors from beyond the region.