Britain’s The Independent newspaper said what's more the drugs were held inside 14 condoms - something that not even Pope Francis has, as of yet, felt he can endorse the use of.
Citing a customs report, Germany’s Bild am Sonntag reported that officers at Leipzig airport found the cocaine inside a shipment of cushions coming from South America, it said.
The package was simply addressed to the Vatican postal office, meaning it could have been collected by any of the state's 800 residents.
Subsequently, German officers handed the package over to Vatican police, who set up a sting operation in an attempt to capture the intended recipient, but no one claimed the drugs. German authorities believe this indicates that the person was tipped off.
A spokesman for the German Finance Ministry, which oversees the customs office, has verified the report and prosecutors in Leipzig plan to issue a statement on Monday providing further details.
Vatican spokesman the Rev Federico Lombardi confirmed that the Vatican police had cooperated with German police in an attempt to identify the traffickers, adding that the investigation remains open.