Berlin: German police are investigating an Australian-born British woman for suspected incitement after she questioned the Holocaust during a far-right protest in the eastern city of Dresden.

A spokeswoman for Dresden police says Michele Renouf was one of two people being investigated for remarks made at the neo-Nazi rally on Saturday commemorating those killed in the 1945 Allied bombing of the city.

Videos of the rally posted online show Renouf saying the only Holocaust perpetrated in Europe was against German civilians. Publicly denying the Nazis' well-documented murder of an estimated six million Jews is a criminal offence in Germany.

Dresden police spokeswoman Jana Ulbricht said on Sunday that officers ordered the rally dissolved after determining that two speakers had broken the law.

Renouf, former wife of the late New Zealand financier Sir Frank Renouf, has long been an advocate of right-wing views, and is a supporter of Holocaust-deniers such British historian David Irving.

AAP