The monstrous creation has sparked on-line revolt from Salmond supporters, who have blasted the 45 percent reference painted on the figure.
But Salmond has said it is typical of the “Tory-controlled” constituency, and that there was no need to target innocent Nessie.
It is understood the dummy has been created by the Waterloo Bonfire Society.
The photograph was originally posted on social media by East Sussex County Council – but it says it had no part to play in its creation.
A spokesman for the First Minister said: “(They) obviously view the First Minister – and the 45% of Scots who voted Yes – as a big a threat to the Westminster establishment as Guy Fawkes, although it’s unclear why poor Nessie has been targeted.
“It’s a typical Tory attitude to Scotland, whether north or south of the border.”
Alex Salmond bonfire stunt – First Minister asks why Nessie has been targeted?