LABOUR grandee Dame Margaret Hodge is threatening to sue her own party after it opened a formal probe into her for labelling Jeremy Corbyn an “anti-Semite”.

She received a letter from Labour’s General Secretary today announcing the party had opened disciplinary proceedings against her.

Dam Margaret Hodge is threatening to sue her party after it opened a formal probe into her Credit: PA

Dame Margaret told The Sun she is talking to lawyers before deciding on her next move.

But she vowed: “They won’t shut me up.”

The party launched the investigation after her extraordinary bust-up in the Commons chamber with Mr Corbyn on Tuesday night, when she called him an "anti-Semite and a racist".

Yesterday the Labour leader’s spokesman said Dame Margaret - an ex-minister and granddaughter of a Holocaust victim had brought the party into “disrepute”.

The grandee called the Labour leader an 'anti-Semite and a racist' in an extraordinary bust-up Credit: AFP

Dame Margaret let rip at Mr Corbyn on Tuesday night after Labour’s ruling NEC approved a new anti-Semitism code condemned by the Jewish Community.

Meanwhile several Jewish Labour MPs were said to be considering quitting the party in protest at the way Mr Corbyn has dealt with anti-Semitism.

One Labour insider told the Evening Standard that up to four MPs were at “breaking point,” adding: “For many MPs the treatment of Margaret Hodge may be the straw that breaks the camel’s back.”