The message scrawled onto a wall alongside crudely painted crosshairs at CS Lewis Square close to the Newtownards Road reads: “Asylum seekers will be dealt with”.
Alliance Party MLA Peter McReynolds said the message had been reported to police.
“Depressing to see this kind of graffiti appearing near CS Lewis Square in East Belfast, especially in what is a positive and inclusive space,” he posted on his X account.
“I’ve reported it and it will be removed. Those who did this should be ashamed of themselves.”
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The square is named after the renowned Belfast-born author of the Chronicles of Narnia and features seven bronze sculptures from ‘The Lion, The Witch and The Wardrobe’, including Aslan, The White Witch, Mr Tumnus, The Beavers, The Robin and The Stone Table.
The PSNI has been approached for comment.
In recent months, a number of anti-immigration protests and rallies have been held in the square, which has also featured in videos posted by social media accounts showing people engaged in vigilante-style activity.
Last week, TikTok took action to ban a number of accounts linked to the activity.
The @irishbreedulsterr handle, which belonged to the Irish Bred Ulster Rared TikTok account, had amassed more than 19,500 followers and over 116,000 likes before it was banned from the platform.
Videos showing individuals aggressively confronting members of ethnic minority communities were being posted on the account until Monday evening.
Anyone trying to access the account is now met with a message informing them the account is banned.
“The account irishbreedulsterr is no longer available,” the message adds.
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The PSNI has distanced themselves from those involved, labelling the activity as “racism pure and simple”.
Members of the group had suggested on social media that they had been working closely with the PSNI, claiming officers have publicly “thanked them” in the past.
In response, the PSNI released a statement saying: “Such activity is not protecting this community, it is attempting to control it. It is racism pure and simple.”
Last week, Deputy First Minister Emma Little-Pengelly also condemned the behaviour.
“Any vigilantism is wrong. It must be condemned. It has no place in Northern Ireland,” she said.