The Victorian Liberals have disendorsed a candidate after she appeared in a "grossly inappropriate" video calling for a ban on Muslim immigration.
Candidate for the electorate of Yan Yean on Melbourne's northeastern outskirts, Meralyn Klein, says she was misled over the purpose of the video in which she featured.
The video, which ends with the hashtag "#MUSLIMBAN" was published by far-right micro-party the Australian Liberty Alliance, which claims Ms Klein would defect from the Liberal party after winning the seat.
"There are people in this country who are not coming here to get the best out of the country and give the best that they can. I'd like to see us look at immigration," Ms Klein said in Wednesday's video alongside the alliance's Avi Yemini.
Liberal leader Matthew Guy said Ms Klein went "off the rails," with the party seeking her resignation within an hour of discovering the video.
"Meralyn made a video with some of the material which was grossly inappropriate and which her resignation was sought," he told reporters on Thursday.
"It was for another political party - one I might add which we are putting last."
Ms Klein denied being anti-Muslim, and said her comments were taken out of context.
"They cut it, they sliced it and they put it up as their own claiming it was an anti-Muslim video," she told ABC radio.
"Nowhere in anything I said was anti-Muslim."
But Mr Yemini told AAP Ms Klein had been talking to his party for a while.
"She did cuddle up to us, she did tell us she was very much aligned to our policies and the Liberal Party was not strong enough on a lot of these issues," he said.
"It was her plan to win by the Liberals ... so basically if she won the election, she was either going to be an ally of ours in parliament or she was going to defect and come over to us."
The Victorian Electoral Commission has been contacted for comment regarding Ms Klein's status on ballot papers after candidate nominations closed on November 8.
On a policy front Mr Guy announced a plan to establish a unit within the Department of Justice to work on deporting foreign repeat violent offenders, despite it being a federal government responsibility.
"It is incumbent on the state government to identify those people that need to be (deported)," he said.
"We can't just sit by and be spectators, passengers in this process, we've got to actually make sure that it happens."
Mr Guy then visited small businesses in the safe Liberal seat of Caulfield, but cancelled a scheduled appearance at a luncheon organised by the Australian Industry Group.
A spokesman said he had an urgent appointment.
More than a dozen workplace safety protesters gathered outside the luncheon, one of them holding a banner which read "vote Guy, workers die".
