A popular brand of children's coats embroidered with famous Disney characters have been recalled from two Australian department stores amid fears they may pose a choking risk to youngsters.

The coats, which were made in China, were voluntarily recalled by the Go Lo and Crazy Clarks chains after concerns a plastic toggle for the hood could come lose and then be eaten by children.

New South Wales Trading Minister, John Aquilina, said the coats were a potential hazard and urged parents to remove the toggle. However, he added there had not been any reports of any injuries so far.

"A plastic toggle that is used to tighten the hood around a child's head can come off, posing a choking threat for the child," he said. "Although it is a fairly remote risk, where the safety of children is concerned no level of risk is acceptable."