The sheep have been knitted by members of the churches for a special challenge.
They will be placed in the Grange Road area, across Hawtonville Estate and into the town centre to Newark Library.
A Messy Sheep Trail leaflet will be available from the library, both churches and schools. Those returned with the locations of the sheep will be entered into a prizedraw.
The challenge has been organized as part of Hawtonville Messy Church, which meets monthly.
The vicar of Christ Church, the Rev Sam Tredwell, said the trail was a fun and free Christmas activity for all ages.
She said: “We hope it will help us to remember the shepherds who were the first to see Jesus in the Christmas story.”
Leah Turner, the children and families worker at the Methodist church, said they hoped a lot of people would take up the challenge.
A messy sheep trail service will be held at Christ Church on December 22 at 10am when the locations will be revealed.