Lutz Bachmann, co-founder of the Patriotic Europeans against the Islamisation of the West, or PEGIDA, announced his departure on Facebook after German media published the comments where he called refugees "cattle" and "filthy," and a photo showing him with a Hitler mustache and hair combed over like the Nazi Fuehrer.
Bachmann didn't comment directly on the picture, but apologized for the anti-refugee comments, which he made online in September, a month before the group staged its first protest.
"They were ill-considered comments that I wouldn't make in this way today," he said, expressing regret for harming the movement, which has taken pains to distance itself from neo-Nazi groups.
The group has staged weekly demonstrations in the eastern city of Dresden that reached their peak last week, drawing 25,000 people.
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This week's planned rally was canceled after police said authorities had monitored a Tweet calling for one of the organizers to be killed.
PEGIDA's spokeswoman, Kathrin Oertel said the Hitler picture had been satire, but Bachmann's comments about refugees and others he made about German politicians hadn't "contributed to the trustworthiness" of the group.
"One has to be able sometimes to make fun of oneself," he said.