Blue Pouch Fungus

Clavogaster virescens is a species of secotioid or pouch-like fungus in the family Strophariaceae. It is endemic and indigenous to New Zealand, where it grows on rotting wood in native bush and mixed native and introduced forests. It has a stout yellowish stem, and a powder blue, purpleish or greenish blue cap that forms a pouch, often referred to as a peridium, enclosing reddish brown or orange chambered gleba. The species is sometimes known as the "Spindle Pouch".