The officials, in Bavaria, say they will decide within weeks on a bid by Dutch authorities to extradite Klaas Faber, 88, The Sun of London reported Monday.
The Dutch-born SS volunteer was sentenced to life in the Netherlands for killing 22 Dutchmen and it is suspected the true number of his victims is much greater.
He was one of seven Nazi officers who escaped from Breda prison in 1952 and found refuge in Germany.
Faber settled in Ingolstadt, Bavaria, and worked in an Audi factory until his retirement.
He claimed German citizenship under a Nazi law for foreign SS volunteers.
The Dutch warrant lists Faber's nationality as "stateless," arguing he is not protected by the so-called "Fuhrer's Law."