The Dromana College worker also produced a replica cyanide gas canister similar to ones used to kill Jews during World War II and a cap emblazoned with the Nazi eagle.

Students were reportedly also shown uniforms, helmets and rifles used by Australian troops during the war, understood to be from the staffer's own collection.

"I did a bit of artistic licence on the look but I'm really pleased it was brilliant with cream drizzled on it. No wonder it was Hitler's favourite," the man wrote on social media of the cake.

The images and posts were shared with the Anti-Defamation Commission - an organisation against anti-Semitism - before they were removed.

"The community will justifiably erupt in disgust to learn that a Hitler sympathiser has been given control of a classroom to exploit young adults for his own ideology," chairman Dr Abramovich said.

"The Holocaust, in which six million Jews and millions of others were systemically murdered, should not be the subject for funny games, entertainment and dress-up."

Dromana College principal Alan Marr said the incident did "not live up to the standards" expected of staff.

"The intent of the history lesson was to educate students about the impact of World War II but some of the items brought into the class were entirely inappropriate," he said.

"We apologise for any impact this incident may have had on our students or any distress it may have caused to members of the community."

A spokesperson for the education department said the actions of the Nazis were "abhorrent" and should never be forgotten, noting this was a "serious error of judgment".

"Using symbols or artefacts in a way that may normalise or trivialise the actions of the Nazis is completely unacceptable," a department statement read. 

The school and the department are both investigating the incident.

AAP