An aspiring Australian politician was Sunday dumped as his party's candidate for upcoming polls after he reportedly posted anti-Islamic comments on the Internet.

David Barker, who had been selected to stand for the right-leaning Liberal Party in the western Sydney seat of Chifley in the August 21 national elections, had lost the support of the party, leader Tony Abbott said.

Abbott said Barker was "gone" and "finished" after he posted an entry on his Facebook site, widely picked up by the media, suggesting that the governing Labor Party was bringing the nation "closer to the hands of a muslim country".

Barker had been standing against Labor's Ed Husic, a self-described non-practicising Muslim, in Chifley.

Committed Christian Barker said he was not anti-Muslim but he questioned whether Australians wanted to have Muslims in parliament or an atheist, such as Labor Prime Minister Julia Gillard, leading the country.

"I'm not anti-Muslim," Barker told public broadcaster ABC Radio.

"I believe every one should have their own beliefs. But I don't know if we want at this stage in Australian politics a Muslim in the parliament and an atheist running the government."

The latest controversy comes just days after an opposition politician apologised for describing a government school building programme as a "holocaust" during a TV interview.