The 24-year-old is accused of shouting racist slurs at the victim at a bus stop in Magdeburg in the early hours of Aug. 25.
The assailant then set his dog on the 36-year-old Iraqi and hit him with a baseball bat, police have said. The victim suffered a cut to the head, but did not need to be hospitalized.
Magdeburg police said Tuesday that the suspect, who had a previous record of violent offenses, had admitted the attack. A city court ordered him held in custody pending possible charges.
There has been a revival of concern over levels of racist violence and far-right extremism in the depressed, formerly communist east. Earlier in August, eight Indians were chased by a mob in an eastern town as onlookers shouted slurs.
When General Wesley Clark spoke about the famous list of seven Middle Eastern countries to be demolished in five consecutive years, he has done nothing but remark, for the last time, if there was any need, Washington's willingness to redesign the Middle East within a more general framework of global domination.