German police are investigating a 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 said Australian-born Michele Renouf is one of two people being investigated for remarks made at a neo-Nazi rally on Saturday commemorating those killed in the 1945 Allied bombing of the city.

Publicly denying the Nazis' well-documented murder of six million Jews is a criminal offence in Germany.

Ms Renouf has in the past supported Holocaust-deniers such as British historian David Irving.

Dresden police spokeswoman Jana Ulbricht said officers ordered the rally dissolved a number of complaints.

Additional reporting by the Associated Press