A saltwater crocodile terrorised a remote Australian community by snapping up dogs and lunging at kids -- only to meet its end in a feast cooked up by locals.

The 3.6-metre (about 12-foot) reptile "had been stalking and lunging out of the water at children and adults", Northern Territory police said in a statement.

"The crocodile had also reportedly taken multiple community dogs."

After talking to elders and traditional landowners in the Bulla community, police shot and killed the scaly predator on Tuesday, police said.

"The community prepared it for a feast in the traditional manner," they said.

The crocodile had migrated during floods earlier in the year into a river near homes in the area, about six hours' drive south of Darwin, police said.

The animal ended up as the main ingredient in various meals, Sergeant Andrew McBride told Australian public broadcaster ABC.

"I believe he was cooked up into crocodile tail soup, it was on the barbecue, a few pieces were wrapped up in banana leaves and cooked underground," McBride said.

"There was a rather large traditional feast."