The Austrian Government says it may ban a far-right group that received a large donation from the alleged Christchurch mosque attacker.

Key points: The Identitarian Movement received a 1500 euro donation from the alleged Christchurch shooter

The Identitarian Movement received a 1500 euro donation from the alleged Christchurch shooter The leader of the group says he thanked Brenton Tarrant via email, but never met him

The leader of the group says he thanked Brenton Tarrant via email, but never met him Austrian investigators linked the donation to Mr Tarrant after the Christchurch shooting

Chancellor Sebastian Kurz announced the Austrian Government may seek to dissolve the far-right Identitarian Movement in his country after confirming the group received a 1500 euro ($2,383) donation from the alleged Christchurch shooter in 2018.

The leader of the group in Austria, Martin Sellner, admitted to the ABC it was a sizeable financial contribution, and revealed he urged Brenton Tarrant to watch the Group's English language videos online, but denied ever meeting the shooting suspect.

The financial link to the group raises new questions about the rise of the far right in Austria — and casts a shadow over the Identitarian Movement's links to the minor coalition partner of the Government, the Freedom Party of Austria.

"Our position on this is very clear, no kind of extremism whatsoever — whether it's radical Islamists or right-wing extremist fanatics — has any place in our country and our society," Mr Kurz said on Wednesday.

Mr Sellner, 30, said he was "astonished" when he learned of the administration's mooted ban but was "not worried by this at all".

"I think the claim that they're investigating now … will lead nowhere and it's just an overreaction," he said in an interview with ABC News in Vienna.

Generation Identity's headquarters are in this building in the Austrian city of Graz. ( ABC News: Lincoln Rothall )

He denies having ever met Mr Tarrant — but admits the pair briefly traded emails after he received the donation in January 2018.

"I never met him, I never met Brenton Tarrant, I just received his donation and as I always do I wrote a 'thank you' email," Mr Sellner said.

"Then I wrote him back that I also have an English YouTube and he can watch my English videos there, and I thanked him for the support of my work."

Mr Sellner said he had no idea why Mr Tarrant, who travelled extensively throughout Europe in 2018, donated money to his the Identitarian Movement, also known as Generation Identity (GI).

"To be honest, I've been wondering about that. But at the moment I think it was probably part of his plan to drag as many patriots and conservatives as possible into his [alleged] terrorist scheme," he said.

"As far as we know right now — we've checked everything, asked everybody — as far as we know, nobody in Austria met him.

"And also from the European level — out of European GIs nobody told me or could recall that he met an Australian guy travelling Europe."

Prosecutor Hansjoerg Bacher has been investigating Generation Identity and its financial backers. ( ABC News: Lincoln Rothall )

Prosecutors from the town of Graz dispatched intelligence officers to raid Mr Sellner's apartment on Monday after connecting the donation to Mr Tarrant.

They became aware of the donation as part of an ongoing investigation into the group for tax evasion.

"The subject and purpose of the investigation is to find out if links between the Austrian suspect and the Christchurch assassin exists," Hansjoerg Bacher, spokesman for the prosecutor's office, told ABC News in Graz.

He said the donation amount was unusually high.

"Other donations on this bank account only have a double-digit or three-digit euro amount," Mr Bacher said.

"After the incident in Christchurch we were able to form a link; the donation kind of was linked to a face then.

"Because of that we started the investigation and the raid to find out if criminal contacts between the Austrian suspect and the Christchurch suspect occurred."

"The question if they had personal contact is of course part of the investigation," he said.

Electronic devices were also seized as part of the raid.

Links between Freedom Party and the Identitarian Movement

The investigation turns the spotlight again on the relationship between Mr Sellner's group and the Freedom Party of Austria (FPO), which became the junior partner in a governing coalition in late 2017.

Vice-Chancellor Heinz-Christian Strache, member of the far-right Freedom Party, has previously promoted Generation Identity online.

Yesterday, he tweeted: "Fanaticism has no place in our Society."

"There are no overlapping people working in the Freedom Party and in Generation Identity. And for us it is also very important that we are not the youth movement of any political party," Mr Sellner said.

But Mr Sellner told the ABC the Graz Headquarters of the group was owned by a Freedom Party member, Heinrich Sickl.

"He's also member of the FPO the party," Mr Sellner said before adding, "Generation Identity is just renting this place from him to have our headquarters there".

In 2018, Mr Sellner was acquitted by Graz prosecutors on charges of belonging to a criminal organisation.