This is a WWII German patch. As used by the Kriegsmarine (Navy).

The petty officer badges were produced in two types; the regular petty officer and the Sr. petty officer. The difference between the two was the chevron located below the anchor (as illustrated on this page).

The badge shown here was produced to be worn with the Dark-navy blue uniform. The same badge was also constructed with a yellow silk thread embroidered pattern. All badges were worn on the upper right arm.