Germany's central bank - The Bundesbank - has said that it is in the process of dismissing a board member whose comments stereotyped Muslims and Jews, drawing outrage both at home and abroad.

According to The Scotsman, the Bundesbank said that its six-member board "unanimously agreed" to ask German president Christian Wulff to remove Thilo Sarrazin, 65, from his post.

It said the bank's corporate governance commissioner "unreservedly supports" the decision.

German Chancellor Angela Merkel, several members of her government, lawmakers and others have indicated they would like Sarrazin to go, amid fears that his comments were damaging to the central bank's reputation.

A government spokesman said Merkel is satisfied with the bank's announcement. (ANI)