A prime right R-group is introduced for a right near-ring R. A characterization of a prime ideal of a near-ring R is given in terms of the annihilator of a prime right R-group of the near-ring R. Using it a module theoretic characterization of the prime radical of near-rings is presented. Also it is re-established that the prime radical of near-rings is a Hoehnke radical (H-radical) which is idempotent but not complete using this module theoretic characterization of the prime radical of near-rings.