According to police, it is believed that at around 3.15pm, a fox was chased and killed by dogs.
They added that a man, who has not yet been identified but is believed to have been part of the hunt, told the witness that the fox had not been killed.
Local officers attended but no arrests or seizures were made.
A police spokesman said: “We are urgently appealing for more information from residents to identify those responsible.
“Our wildlife crime officers are now making enquiries.
“Anyone with information that would help our enquiries should call 101, quoting incident number 232 of Wednesday, February 7.
“To report anonymously, please call Crimestoppers on 0800 555 111.”
The report follows allegations of fox hunting and criminal damage in Wispington near Horncastle last week.
Police have also appealed for information about that incident.