A TEENAGE graffiti artist accused of stealing pencils belonging to artist Damien Hirst worth £500,000 has been re-bailed.

The artist known as Cartrain, from Leytonstone, is bailed to return to an east London police station on Wednesday, October 14.

His initially bailed to return on Monday, September 14.

His 49-year-old father was given a caution after being caught in possession of criminal property in breach of Section 329 (1) of the Proceeds of Crime Act 2003.

Cartrain allegedly stole a pack of Faber Castell Mongol 482 pencils, which belong to Hirst's Pharmacy exhibit based on his work at the former restaurant of the same name in Notting Hill.

The art work is valued at £10 million while the pencils fetch £500,000.

The 17-year-old said he stole the pencils after Hirst threatened to sue him over unauthorised use of his iconic work, For the Love of God, a diamond encrusted skull.

He is also annoyed that the Brit Art pioneer refused to return collage work, which he believes breached his copyright.

Cartrain's previous dispute resulted him settling out of court with Hirst, paying him £200.

But a group of artists called Red Rag To A Bull, who campaign against heavy-handed copyright control, created their own art works based on Mr Hirst's sculpture, and sold copies of them online.

The sales of the works raised £200 which they have handed back in “compensation” to Cartrain.

James Cauty, a former member of legendary 1980s pop duo The KLF and also known for later burning £1 million with the K Foundation, was at the forefront of the artists' exercise.