Beatrix von Storch tweeted that "perhaps next time the German NATIONAL TEAM should play again?" after Germany lost the European Championship semi-final to France yesterday.
Her choice of the German word "Nationalmannschaft" instead of the term "Die Mannschaft" now commonly used for the squad was seen as criticism of immigrant players.
Berlin's state interior minister, Frank Henkel, accused her today of "wallowing in racist prejudices."
Von Storch later deleted the tweet but defended it against what she called "political correctness."
Members of her Alternative for Germany party have also been criticized for disparaging remarks about a black soccer player, suggesting border guards should be allowed to shoot refugees and for downplaying the Holocaust.