Israeli director Udi Aloni, who won the top audience at Berlin Film Festival on Saturday, has labelled the Israeli government "fascist" and urged Germany to cease its military support of the Jewish state.

At a Q&A session about his award-winning film Junction 48, hours before being presented with the Panorama Audience Award for best fiction film, Mr Aloni said Germany supported the "fascist regime of Israel", according to a report by Channel 10 News.

The 56-year-old called Israel a "democracy of white people" and criticised German chancellor Angela Merkel's support for Israel, saying: "Merkel does not mention the occupation and sells submarines to Netanyahu to continue such things."