South African police were unable to confirm the status of the 2007 investigation.
The new investigation will have to determine why the photograph resurfaced four years
later.
South African police emphasised that the photograph should not raise "racial connotations" but instead should focus on the murder of a child.
"Whether the child was white or black, the photograph is still a big concern because it depicts the murder of a child," said Police Minister Nathi Mthethwa's spokesman,
Zweli Mnisi.
Over 20 Facebook users had removed themselves from Terrorblanche's contact list after authorities suggested that anyone who viewed the picture and failed to report it
could face prosecution.
Two Facebook groups, one calling for the arrest of Terrorblanche's friends and another protesting against him, grew quickly to more than 300 supporters.
Officials said anyone who produced or distributed the photo could have violated several laws, including South Africa's Children's Act, Films and Publications Act, and Criminal Procedure Act.
-HERALD ONLINE