Ukip’s decision to allow an ‘anti-Islam’ campaigner onto the leadership ballot has threatened to split the party in two, with a number of high-profile members threatening to quit if she wins the race to succeed Paul Nuttall.

The selection of Anne Marie Waters, who founded the Sharia Watch pressure group, has polarised the party, with former leader Nigel Farage warning that Ukip will be “finished” if it places Islam at the heart of its agenda.

Other Ukip members are understood to share Mr Farage’s concerns, with several pointing to Paul Nuttall’s divisive ‘burka ban’ during the general election as evidence that anti-Islamic policies are harming the party’s fortunes.

Ms Water’s announcement as candidate has already resulted in senior official Mike Hookem resigning his position as party whip in protest yesterday, with the MEP stating that he could not “turn a blind eye” to her “extreme views”.