Germany's spy agency BfV has labeled the entirety of the far-right Alternative for Germany (AfD) party as an extremist entity.

The BfV domestic intelligence agency, which is in charge of safeguarding Germany's constitutional order, said the announcement comes after an "intense and comprehensive" examination.

"The ethnicity- and ancestry-based conception of the people that predominates within the party is not compatible with the free democratic order," the BfV said on Friday.

"It aims to exclude certain population groups from equal participation in society, to subject them to treatment that violates the constitution, and thereby assign them a legally subordinate status."