Nigel Farage has issued a warning to Keir Starmer as the party tries to keep Muslim votes.
The Labour Party landed itself in hot water after they stood by the candidate in the Rochdale by-election, despite his remarks about Israel.
Mr Ali, the MP for Rochdale, claimed Israel had allowed the 7 October attacks by Hamas as a pretext to invade Gaza.
Labour has now withdrawn support for the MP in a move that GB News host Andrew Pierce slammed "too little, too late."
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'Labour encouraged mass migration and now they need to keep millions of Muslim votes' Farage issues warning to Starmer
GB News
He will still be listed as the Labour candidate on the ballot paper as under electoral law it is too late to replace him.
However, it is understood Mr Ali has been suspended from the party pending an investigation.
Speaking to GB News about the situation Farage said: "Just shows what a terrible pickle they're in, aren't they?
"Under Mr Blair's leadership, they encourage mass migration. And they got one particular group coming into this country from Pakistan, mostly, And that's the Muslim vote.
Azhar is a Labour candidate
GETTY
"85 to 90 per cent of them were voting Labour until this moment. Suddenly, over Gaza, they are facing all sorts of challenges.
"I suspect that to try and not be anti-Semitic or seem to be anti-Semitic and to keep those mass millions of Muslim votes is going to prove to be long-term impossible for Labour.
"They may just about hold it together this side of a general election. Longer term, it is a disaster for the party, within two or three years we will have religious, sectarian politics in our country, represented in Westminster.
"It gives me no pleasure to say that, but I can see it clear as day."
Keir Starmer is the leader of the Labour party
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The former Reform leader was then asked by Pierce: "Do you think overall it will affect the Labour vote when it comes to the election?"
"I suspect in the general election, where we see sectarian candidates who are putting the interests of Gaza above the interests of, I don't know, Tower Hamlets or wherever it may be.
My suspicion is that for this general election that will take place in constituencies where Labour already has a 20,000 majority.
"There will be significant protest votes, but not enough to unseat Labour MPs at this stage.
"But I can see going in to the general election after this a very different political situation in many of our inner cities and towns in the north of England."