A Palestinian flag sticker was used to cover up a Star of David necklace on a statue of the singer Amy Winehouse.
It happened in Camden Market, north London, where the statue of the Jewish performer was erected in 2014, three years after her death.
A spokesperson for the Met Police said the force recognised that the incident “will have caused upset to many people”.
Camden Market said the sticker was removed.
It said in a statement: “We were made aware on Monday that a member of the public had placed a sticker over the Star of David necklace on the Amy Winehouse statue in the North Yard of Camden Market.
“This was removed immediately, and the incident was reported to the police.
“Camden Market remains first and foremost a place of diversity – a global destination that welcomes everyone.”
The statement added that discrimination would not be tolerated at the market.
A Met Police spokesperson said the force was making inquiries to establish the circumstances of what happened and to see what evidence, such as CCTV footage, was available.
A spokesperson for the Campaign Against Antisemitism said: “Covering the Star of David, a well-known symbol of Judaism, on the statue of a British-Jewish singer, with a sticker of the Palestinian Authority flag, is antisemitic.
“Right now, 69% of British Jews say that they are less likely to show visible signs of their Judaism. When even a statue of a Jewish person can’t get away with it, is that any surprise?”