Rupert Murdoch’s company News Corp will not be allowed to participate at Melbourne Pride after including a cartoon of gay Nazis in The Australian.

The illustration pictured gay activists as rainbow uniformed Nazi stormtroopers in cartoon published in September. .

The offensive image, created by cartoonist Bill Leak, offered the title ‘Waffen – SSM’ – a play on the Nazi Party’s Schtutzstaffel otherwise known as the Hitler’s military.

It came as the country is divided over whether to (finally) introduce same-sex marriage.

Backlash came as Jewish LGBTI group Aleph Melbourne announced it would not participate if News Corp Australia remained a sponsor.

Midsumma, after speaking to stakeholders, originally said the partnership would continue. But now, the organization has changed its position.

‘We are… now acutely aware that continued community concerns are threatening to fracture our communities in potentially destructive ways,’ a statement from Midsumma read.

‘We are still facing heartbreaking pressure about the issue, through a multitude of public and private channels.’

The statement will not take up any advertising benefits offered by the Herald Sun for the 2017 festival, and the Herald Sun will not march or hold a stall.

A News Corp Australia spokesperson told BuzzFeed News the company was ‘delighted’ to have previously supported the festival, but respected Midsumma’s decision.

‘News Corp constantly reviews its sponsorship arrangements and the decision by any event to cease, change or reframe its sponsorship priorities would not necessarily preclude us from seeking to partner with that event, or a similar event, in future,’ they said.

‘Our partnerships, like our content, reflect the multitude of people and personalities, views and opinions on offer throughout our state. On any given day, readers will see a wide range of views in our newspapers and websites.’