German police in Bavaria and North Rhine-Westphalia states also arrested two suspects in connection with the operation.

The weapons were to be used to "establish a far-right network" in Germany, Austrian Interior Minister Karl Nehammer told a news conference in Vienna.

Five men aged 21 to 53 with links to neo-Nazi groups were arrested in Austria, and were "unfortunately known for a while already" in the country, Nehammer said.

In October, Austrian investigators began to track drug deliveries from Germany and discovered that the profits were being used to buy arms.

A series of searches uncovered 100,000 rounds of ammunition, 100 firearms, explosives that included hand grenades, narcotics and cash, a Viennese police statement said.

Investigators also recovered items issued by the World War II German army, the Wehrmact.