Prominent Melbourne left wing politician Stephen Jolly has split with his party, the Victorian Socialists, amid serious allegations involving the City of Yarra councillor.

Details of the accusation against Cr Jolly, who has not been arrested or charged and denies any wrongdoing, cannot be reported for legal reasons.

The Socialists say they moved to suspend their most high profile member earlier this month after learning of the allegations, with Cr Jolly immediately resigning from the party in response.

Yarra City councillor Stephen Jolly has quit the Socialist Party. Credit:Pat Scala

Cr Jolly told The Age that he had done nothing wrong and lashed his former comrades for moving against him when he had not been charged or even arrested.