Reports that a German school in Turkey has banned Christmas celebrations – sparking widespread condemnation back home – are not true, according to the institution at the centre of the story.

The row started last week when the school principal sent an email to all staff reminding them that Christmas was not to be celebrated during class time, including through singing carols. The Christian festival was not on the curriculum and so it should not be taught, the missive said.

The story was picked up by German media, who alleged the school choir was also forced to cancel a festive performance at the German consulate.

On Sunday the foreign ministry in Berlin released a statement condemning the actions of the school, with some politicians even suggesting its funding could be removed.

“We don't understand the surprising decision by the management of the Istanbul Lisesi,” the German foreign ministry said.

“It is too bad that the good tradition of pre-Christmas intercultural exchanges at the school with a long German-Turkish tradition has been suspended," it added in a statement.

“We are of course taking this up with our Turkish partners.”

But the allegations were swiftly denied by the Istanbul Lisesi school, a Turkish-German bilingual academy which receives some financial backing from the German government, which denied banning Christmas and said the media had misrepresented the situation.

“The reports in German media about restrictions on Christmas festivities of German teachers do not reflect reality,” it said.

A choir performance had been cancelled, it said, but by the German teachers involved in the event, who had pulled out.

“A concert was cancelled by the German teachers in question without explanation and there is no question of the school or its management placing an obstacle in its way or prohibiting it."

Ruling AKP party MP Mustafa Yeneroglu also denied the claims, saying they were irresponsible. “Such false reports do nothing for Turkey-Germany relations,” he said.

But German politicians still reacted angrily to the claims, and several newspapers ran the story on the front page on Monday.

The Greens' education policy spokesman Ozcan Mutlu said the alleged ban was “simply shocking”, adding that if it remains in place the schools funding could come in to question.

Refugees settle in Germany Show all 12 1 /12 Refugees settle in Germany Refugees settle in Germany Germany Mohamed Zayat, a refugee from Syria, plays with his daughter Ranim, who is nearly 3, in the one room they and Mohamed's wife Laloosh call home at an asylum-seekers' shelter in Vossberg village on October 9, 2015 in Letschin, Germany. The Zayats arrived approximately two months ago after trekking through Turkey, Greece and the Balkans and are now waiting for local authorities to process their asylum application, after which they will be allowed to live independently and settle elsewhere in Germany. Approximately 60 asylum-seekers, mostly from Syria, Chechnya and Somalia, live at the Vossberg shelter, which is run by the Arbeiter-Samariter Bund (ASB) charity 2015 Getty Images Refugees settle in Germany Germany A refugee child Amnat Musayeva points to a star with her photo and name that decorates the door to her classroom as teacher Martina Fischer looks on at the local kindergarten Amnat and her siblings attend on October 9, 2015 in Letschin, Germany. The children live with their family at an asylum-seekers' shelter in nearby Vossberg village and are waiting for local authorities to process their asylum applications. Approximately 60 asylum-seekers, mostly from Syria, Chechnya and Somalia, live at the Vossberg shelter, which is run by the Arbeiter-Samariter Bund (ASB) charity Getty Images Refugees settle in Germany Germany Kurdish Syrian asylum-applicant Mohamed Ali Hussein (R), 19, and fellow applicant Autur, from Latvia, load benches onto a truckbed while performing community service, for which they receive a small allowance, in Wilhelmsaue village on October 9, 2015 near Letschin, Germany. Mohamed and Autur live at an asylum-applicants' shelter in nearby Vossberg village. Approximately 60 asylum-seekers, mostly from Syria, Chechnya and Somalia, live at the Vossberg shelter, which is run by the Arbeiter-Samariter Bund (ASB) charity Getty Images Refugees settle in Germany Germany Mohamed Ali Hussein ((L), 19, and his cousin Sinjar Hussein, 34, sweep leaves at a cemetery in Gieshof village, for which they receive a small allowance, near Letschin Getty Images Refugees settle in Germany Germany Mohamed Zayat, a refugee from Syria, looks among donated clothing in the basement of the asylum-seekers' shelter that is home to Mohamed, his wife Laloosh and their daughter Ranim as residents' laundry dries behind in Vossberg village on October 9, 2015 in Letschin, Germany. The Zayats arrived approximately two months ago after trekking through Turkey, Greece and the Balkans and are now waiting for local authorities to process their asylum application, after which they will be allowed to live independently and settle elsewhere in Germany Getty Images Refugees settle in Germany Germany Asya Sugaipova (L), Mohza Mukayeva and Khadra Zhukova prepare food in the communal kitchen at the asylum-seekers' shelter that is their home in Vossberg village in Letschin Getty Images Refugees settle in Germany Germany Efrah Abdullahi Ahmed looks down from the communal kitchen window at her daughter Sumaya, 10, who had just returned from school, at the asylum-seekers' shelter that is their home in Vossberg Getty Images Refugees settle in Germany Germany Asylum-applicants, including Syrians Mohamed Ali Hussein (C-R, in black jacket) and Fadi Almasalmeh (C), return from grocery shopping with other refugees to the asylum-applicants' shelter that is their home in Vossberg village in Letschin Getty Images Refugees settle in Germany Germany Mohamed Zayat (2nd from L), a refugee from Syria, smokes a cigarette after shopping for groceries with his daughter Ranim, who is nearly 3, and fellow-Syrian refugees Mohamed Ali Hussein (C) and Fadi Almasalmeh (L) at a local supermarket on October 9, 2015 in Letschin, Germany. All of them live at an asylum-seekers' shelter in nearby Vossberg village and are waiting for local authorities to process their asylum applications, after which they will be allowed to live independently and settle elsewhere in Germany 2015 Getty Images Refugees settle in Germany Germany Kurdish Syrian refugees Leila, 9, carries her sister Avin, 1, in the backyard at the asylum-seekers' shelter that is home to them and their family in Vossberg village in Letschin Getty Images Refugees settle in Germany Germany Somali refugees and husband and wife Said Ahmed Gure (R) and Ayaan Gure pose with their infant son Muzammili, who was born in Germany, in the room they share at an asylum-seekers' shelter in Vossberg village on October 9, 2015 in Letschin, Germany. Approximately 60 asylum-seekers, mostly from Syria, Chechnya and Somalia, live at the Vossberg shelter, which is run by the Arbeiter-Samariter Bund (ASB) charity, and are waiting for authorities to process their application for asylum 2015 Getty Images Refugees settle in Germany Germany German Chancellor Angela Merkel pauses for a selfie with a refugee after she visited the AWO Refugium Askanierring shelter for refugees in Berlin Getty Images

Other politicians seized upon the alleged incident, seeking to contextualise it in recent friction between the two countries.

Relations between Ankara and Berlin have been strained since Turkey's failed military coup in July, with Germany repeatedly expressing concern over the scope of a massive crackdown on Mr Erdogan's opponents.

Andreas Scheuer, the general secretary of the Bavarian CSU party said the move was “new proof that (President Recep Tayyip) Erdogan's Turkey is burning all bridges with Europe."