An SNP councillor who is suing a colleague amid a race row has lost out in her bid to be a party candidate in a North Lanarkshire ward.

Julie McAnulty, who has taken legal action after being accused of using the word ‘Pakis’, was squeezed out in the Coatbridge North contest.

However, a party source said there are other selection vacancies for McAnulty to consider.

Over the last 18 months, the SNP in North Lanarkshire has become mired in a turf war marked by rancour, backbiting and petty battles between rival factions. A series of selection contests to pick candidates for May’s council election in North Lanarkshire has again inflamed tensions.

In February last year, McAnulty was put on administrative suspension by the SNP after a party colleague complained to Nationalist headquarters about an alleged conversation in 2015.

The complaint, which was leaked to the press, read: “Julie was asking me about the trouble and in-fighting in the Bellshill branch and asked for my view on the trouble in Coatbridge.

“During this discussion Julie made a comment which I found to be unacceptable.

“She asked if I agreed with her that it was, in her words, the ‘Pakis’ that were causing the problems locally and that we needed to get rid of them from the party.

“I outlined immediately that I was not happy with her comment as I know and respect many Muslim members locally.”

Councillor McAnulty, a music teacher and church organist, denies making the racist comment and the suspension was lifted months later.

It also emerged that McAnulty was suing her accuser in the Court of Session and seeking damages for defamation.

In a statement issued on behalf of the councillor last year, solicitor advocate Paul Motion of BTO Solicitors LLP confirmed the lawsuit:

“Ms McAnulty has tried for some months to resolve this matter but without success.

“The seriousness of the allegation against my client has left her with no option but to pursue the matter through the courts to defend her reputation and clear her name. My client will not be making any further public comment on the matter.”

McAnulty sought the selection for Coatbridge North, but was defeated last week by Allan Stubbs and Kirsten Larson.

A Scottish Labour spokesman said : "The SNP's infighting is becoming a real embarrassment for Nicola Sturgeon. Between constantly fighting among themselves and pushing for another divisive referendum on Scotland leaving the UK, it's clear the SNP isn't fit to focus on the day job of investing in the communities of North Lanarkshire."

Councillor McAnulty could not be reached for comment.