AN SNP councillor who was suspended by her party over claims she made racist comments has had her membership reinstated.

Julie McAnulty appeared on the front page of a tabloid newspaper in February after a complaint was made that she told a fellow activist that she wanted to "get the Pakis out of the party".

Counter-claims quickly emerged that the North Lanarkshire councillor was a victim of a smear campaign launched as part of an internal SNP power struggle in the region.

Last night, a vindicated Ms McAnulty said: "I am tremendously happy and relieved that my suspension has been lifted."

The SNP launched an investigation and suspended Ms McAnulty, a music teacher and church organist, following the allegations, meaning she was deprived of her status as a list candidate at the Holyrood election in May.

It is understood that she found out yesterday that the investigation had ended, following a six month ordeal, and that no action would be taken. It leaves her free to stand as an SNP candidate in next year's council elections.

The complaint against her, submitted to party headquarters, was made by Sheena McCulloch, a long-standing party activist who has worked for SNP MSP Richard Lyle.

Mr Lyle was elected as MSP for the Uddingston and Bellshill constituency in May, after defeating Ms McAnulty in a selection battle to stand for the SNP in the seat.

Ms McAnulty is close to MP Phil Boswell, who she worked for as a parliamentary assistant, and who is seen as a leading figure in a faction opposed to an SNP old guard in North Lanarkshire comprising Mr Lyle and his allies.

Following the racism claims, SNP headquarters also suspended its Coatbridge and Chryston branch as infighting exploded into the open. SNP National Secretary Patrick Grady said that "a culture of mistrust" had created a "toxic" environment in which "the level of discord is intolerable".

The turf war between rival factions in North Lanarkshire became so intense, with accusations of bullying, intimidation and dirty tricks, that the SNP recently commissioned a former private detective to investigate it.

In June, it emerged that Ms McAnulty, who always strenuously denied making racist comments, had launched a six-figure defamation action against her accuser, Ms McCulloch. At the time, a statement issued by her solicitor on her behalf said that pursuing the matter through the courts was the only way to defend her reputation and clear her name.

Ms McAnulty has also spoken to Police Scotland's Counter Corruption Unit about alleged criminality within the SNP.