Dame Margaret Hodge has threatened to take the Labour Party to court if it continues its investigation into her attack on Jeremy Corbyn over antisemitism in the party.

The veteran Labour MP is embroiled in a bitter dispute with her party leadership, which has insisted she should apologise for calling Mr Corbyn a "racist and antisemite" over his response to antisemitism in Labour ranks.

Raising concerns about the fairness of the inquiry into her conduct, Dame Margaret's lawyers said they reserved the right to "refer this matter to Court".

In a strongly worded letter to Labour's general secretary, Jennie Formby, who is overseeing the investigation, they wrote: "In the event that you take the misguided step of continuing with this investigation, we would expect any further steps to comply with principles of natural justice and fairness.

"We will be monitoring this, and reserve all of our client's rights to refer this matter to Court under the contractual relationship between our client and the Party, and the obligations (express and implied) which follow from this."

Dame Margaret, who is Jewish, confronted her party leader in Parliament last month over his handling of the antisemitism crisis engulfing Labour, claiming he did not want "people like me" in the party.

In response, Mr Corbyn's spokesman vowed that "action will be taken" against the veteran MP, and Dame Margaret received a letter from Ms Formby the following day informing her that she was under investigation. She also received a telling off from Nick Brown, the chief whip, after several people reportedly complained about her behaviour during the row.

In their latest letter, Dame Margaret's lawyers raised a series of concerns about the nature of the investigation, including asking why the MP had been asked to apologise before the supposedly "fair" investigation found she had committed any wrongdoing.

In a letter suggesting the investigation would be "brought to an end" if Dame Margaret apologised for her actions, Ms Formby said: "We are currently at the beginning of the process. Nobody has prejudged the outcomes, nor is there any improper motive for the investigation."

Protests against Labour antisemitism Show all 14 1 /14 Protests against Labour antisemitism Protests against Labour antisemitism Protesters clashed during the demonstration Reuters Protests against Labour antisemitism Members of the Jewish community hold a protest against Labour party leader Jeremy Corbyn and antisemitism in the Labour Party AFP/Getty Protests against Labour antisemitism Protesters hold placards and flags during a demonstration, organised by the British Board of Jewish Deputies for those who oppose antisemitism, in Parliament Square Reuters Protests against Labour antisemitism Hundreds of people gathered in Parliament Square to protest against antisemitism in the Labour Party EPA Protests against Labour antisemitism Labour MP Luciana Berger speaks during the protest PA Protests against Labour antisemitism A protester blows through a shofar during the demonstration Getty Protests against Labour antisemitism Members of London's Jewish community protest in support of Labour leader Jeremy Corbyn outside parliament EPA Protests against Labour antisemitism Labour MP John Mann speaks during a protest against antisemitism PA Protests against Labour antisemitism People protest against antisemitism in the Labour Party as Jewish community leaders have launched a scathing attack on Jeremy Corbyn, claiming he has sided with antisemites ‘again and again’ PA Protests against Labour antisemitism Labour politicians Stella Creasy and Chuka Umunna leave after attending the demonstration Getty Protests against Labour antisemitism A pro-Jeremy Corbyn protester holds a placard during a counter-protest Getty Protests against Labour antisemitism A support of the Labour Party hold up a placard during the demonstration Reuters Protests against Labour antisemitism Jeremy Corbyn supporters during the demo Reuters Protests against Labour antisemitism A protester holds up a sign reading ‘For the many, not the Jew’ AFP

In response, Dame Margaret's lawyers wrote: "You claim that your investigation has not been pre-judged and that under the Labour Party Rules a fair process can still be followed, but that investigation would be dropped if our client apologises.

"For our client to be forced into an apology, this would mean that you have pre-determined that she has done something wrong."

They accused Ms Formby of "arrogantly choosing to ignore" the fact that Dame Margaret receiving a reprimand from the chief whip appeared be a "predetermination" of the outcome of the investigation into her conduct, meaning the latter would not be conducted fairly.

In her letter, Ms Formby had written: "To be clear, the current investigation is not directed to your client raising concerns about antisemitism.

"As the chief whip's letter points out, Labour Party members have a right to raise concerns about antisemitism. The party is making considerable efforts to address that issue.