Farrer Greens candidate Amanda Cohn said the revelations regarding Mr Kunde's past statements were “disappointing and saddening”.

“I congratulate Mr Kunde for resigning from the ALP in recognition that his reported statements are not acceptable,” Dr Cohn said.

“I understand that Mr Kunde will remain on the Ballot paper as the ALP candidate as the legislation prevents a candidate from withdrawing after nominations have closed.

“That being the case, I sincerely hope that the ALP will now cease campaigning for Mr Kunde.

“It's really disappointing that voters in Farrer will be faced with even fewer options this election in what's already seen as a ‘safe seat’.

“I hope that this scandal will not distract us from the major issues facing our communities like water security and cuts to healthcare.

“Voters are increasingly disillusioned with the two old parties and I will continue to campaign strongly for strengthening Medicare, a fairer tax system, funding Gonski and real action on climate change.”

EARLIER – 9am

In an interview with ABC Radio Christian Kunde said he was friends with the spokesman of an Islamist group, but denied reports he likened homosexuality to incest.

Uthman Badar, a spokesman for Islamist group Hizb ut-Tahrir reportedly met Mr Kunde during his first year of university 10 years ago and had an “ongoing friendship” with him since.

However, he denied News Limited reports he made homophobic remarks during a lecture at Sydney University and said he supported same sex-marriage and was not homophobic.

“I think that homosexual people should be entitled to all the same opportunities that heterosexual people are,” Mr Kunde told ABC Radio.

“It would be akin to you reciting Leviticus on air in a one-hour discussion about the topic, and then your view being taken as exactly verbatim what happens to be in Leviticus,” Mr Kunde said.

He also denied being a member of Hizb ut-Tahrir.

“It's one of the great ironies that I'm apparently linked to a group that would excommunicate me merely for being a member of a political party, let alone standing for Parliament in a democratic process,” he said.

He also told the ABC that he stepped down so the matter would not distract from Labor's campaign.

“It was my choice to step aside,” he said.

EARLIER – 8am

The Labor candidate for Farrer has stood down from the election race two weeks out from the big day after reports linked him to a controversial Islamic group.

A statement was released before 5am this morning, on behalf of Christian Kunde, announcing his resignation.

The move follows an article by News Limited linking Mr Kunde to senior spokesman of the Australian branch of controversial group Hizb ut-Tahrir, Uthman Badar.

In his statement Mr Kunde said he was sorry to leave the campaign but he didn’t want an “ongoing argument between the Murdoch press and I to distract from the National Campaign”.

“I am not homophobic and I believe in Australian democracy. I disagree with the way my comments are being reported, in fact this distortion is exactly what I have warned about,” Mr Kunde said.

“However, after consideration and consultation with my family I have opted to stand aside as an endorsed Labor representative as I do not wish to distract from Labor’s federal campaign.”