Far-right Pegida
A Pegida supporter carries a German flag in front of the Dresden Semper opera houseReuters

Amazon will donate the profits it earns from a Christmas single released by German far-right group Pegida to a refugee charity. The online retail giant was criticised for profiting from the sale of the instrumental track, entitled Together we are Strong!, which has unseated Adele from the top of the German Amazon download charts.

Pegida said that the proceeds from its single would go to homeless Germans, but Amazon said in a statement that its part of the proceeds would be donated to the millions of refugees who have sought refuge in Germany fleeing conflict in Syria, and other parts of the Middle East and Africa.

"Amazon's profits from the sale of this song will go to a non-profit-making organisation supporting refugees," the company said.

Pegida has surged in popularity in the midst of Germany's immigration crisis, with tens of thousands attending the anti-Islam group's rallies in Dresden.

The group was founded in October 2014, but seemed in terminal decline after founder Lutz Bachman was pictured with a Hitler-style moustache, with attendance at rallies dwindling to a few hundred before the migration crisis.