Pro-Russian forces have detained a team of military observers travelling across eastern Ukraine with the Organisation for Security and Cooperation in Europe.
The team was being held in the eastern city of Slovyansk late today, according to Stella Khorosheva, a spokeswoman for the town's self-proclaimed separatist mayor.
She said the group possessed "suspicious materials", but said they were unharmed and would be released after further investigation.
The OSCE wrote on Twitter that they had lost communication with the German-led team, but that all members of the OSCE monitoring team were safe.
Pro-Russian insurgents have seized police stations and government buildings in at least 10 cities and towns in eastern Ukraine in April.
Militia groups have kidnapped several journalists over the past week in the increasingly unstable region.
Germany's Defence Ministry said it had lost contact with the team, which it said was made up of eight people - three German soldiers, a German translator and one soldier each from the Czech Republic, Poland, Sweden and Denmark.
Contact broke off around lunchtime and, as of this evening, "we are still not in contact," a German Defence Ministry spokesman said. However, he said the ministry could not confirm reports from Ukraine that they were being held by separatists.
But Czech military spokesman Jana Ruzickova confirmed that the team was detained.
German defence minister Ursula von der Leyen was quoted on ARD television's website as saying: "At the moment, we cannot rule out that the international OSCE military observers are being held in Ukraine."
"We have not had contact since midday ... they are in Ukraine on a neutral, international mission to give the international community an objective picture of the situation," said Ms von der Leyen, who added that Germany is using all diplomatic channels to restore contact.
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