Prince George's County police said Ku Klux Klan literature was distributed Thursday in College Park Woods, the subdivision that President Reagan visited last spring after he learned a black family had been the target of racial harassment.

Police said four applications to join the Klan were taped to cars in the 9100 block of Drake Place, where Philip and Barbara Butler, the couple the president visited, have their home, and in the 3500 block of Duke Street. A sticker reading "The Knights of the KKK are watching" was placed on a car in the Butlers' block.

The leaflets and the sticker were confiscated by police.

Police said they learned of the literature when they were contacted by town officials, who received a call from a citizen about 10 a.m. Thursday reporting that "racial flyers" had been distributed in College Park.

Reached by telephone at her home last night, Barbara Butler said she had not heard about the incident until a reporter called. Her lawyer, Stephen A. Fennell, said he would investigate and report back to the Butlers.

White House deputy press secretary Lyndon Allin said he had not heard about the literature, but that "the president showed his concern last year when he went out there over that type of incident, and if it happened again, he would feel the same way."