Police in Germany were yesterday hunting robbers who snatched priceless 18th century jewellery from a state museum in Dresden in what local media have called the biggest art heist of all time.

Authorities across eastern Germany have been put on alert after thieves made off with treasures from the Green Vault at Dresden’s Royal Palace in an astonishing smash-and-grab raid early Monday morning.

Police have called for witnesses to step forward and released images of the stolen items, which were taken from a collection of jewellery of 18th-century Saxony ruler Augustus the Strong.

They include a sword whose hilt is encrusted with nine large and 770 smaller diamonds, and a diamond bow decorated with 662 brilliants.

Extraordinary CCTV footage of the two men going about their raid have also been released by investigators.

In the black-and-white clip, one of the two suspects was seen using an axe to smash the display case.

The thieves launched their brazen raid after having set off a fire at an electrical panel near the museum in the early hours of Monday, deactivating its alarm as well as street lighting, police said.

Despite the power cut, a surveillance camera kept working and filmed two men breaking in.

“The whole act lasted only a few minutes,” said police in a statement.

The suspects then fled in an Audi A6 and remain on the run. The apparent getaway car was found on fire later elsewhere in the city, said police, adding that the vehicle was being examined for clues.

On Monday evening, Dresden police chief Joerg Kubiessa told broadcaster ZDF that a “criminal gang” may be behind the robbery.