Thilo Sarrazin (pictured) says the publisher has refused to release the book despite a contract he signed in 2016

A publishing giant is refusing to release a book whose German author accuses Islam of a 'hostile takeover'.

Random House fears that politician-turned-writer Thilo Sarrazin could fuel hatred with his latest book.

'Hostile Takeover - How Islam Hampers Progress and Threatens Society' is at the centre of a dispute to be heard in a Munich court on Monday.

Last night daily newspaper Bild reported that the former state finance minister's book was declined over fears of fanning anti-Muslim hatred.

His 2010 book 'Germany Does Away With Itself' became a bestseller after arguing that under-educated Islamic migrants made the nation 'more stupid'.

It is credited with helping pace a political path for the far-right Alternative for Germany party. Last year the group entered parliament with almost 100 deputies.

Mr Sarrazin, who used to be a central banker, says that his book is a critique of the Koran based on close scrutiny.

The 73-year-old claims he signed a contract with the publisher in November 2016 and submitted the manuscript in February 2018.

'After a lot of back and forth about the publishing date, the publisher said at the end of May that it would not put the book out at all,' he told Bild.

The publisher confirmed it will face the author in court but declined to comment on the specifics of the case

Random House declined to comment on the specifics of the fall-out but Bild says sources at the publisher expressed fears the new book could 'seize on and amplify anti-Islam sentiments'.

The publisher said in a statement that the new book was 'unannounced', adding it had 'neither the intention of stopping it nor blocking its publication'.

'The author is free to publish his book at any time with another house,' it added.