The anti-immigration Alternative for Germany party has sued the domestic intelligence service for classifying it as a right-wing extremist organization.

Germany's far-right AfD party said on Monday it was suing the domestic intelligence agency for labelling it a "right-wing extremist" party, a designation that sparked a row between Berlin and Washington.

The reclassification — AfD was previously designated a “suspected” extremist group — is likely to reignite debate over a political ban on the party.