Thousands of people gathered in Dresden to block for the first time an annual neo-Nazi march commemorating the Allied bombing of the German city during World War II.

Some 6,400 neo-Nazis gathered outside the Neustadt railway station to mark the anniversary of the devastating bombing raids, and were to have staged a "funeral march" after listening to a series of speeches, but around 12,000 counter-protestors blocked the rally.

"We have for the first time succeeded in preventing the biggest neo-Nazi march in Europe," said Lena Roth of the "Dresden without Nazis" alliance of politicians, artists and unionists.

Police, who deployed nearly 5,700 men, said late Saturday that clashes broke out on several occasions resulting in "at least 27 injured, including 15 policemen" as stones and bottles were thrown.

But they said the neo-Nazis were not able to stage the march as their opponents blocked highways, crossroads and railway lines.

About 30 people were arrested during the day from the two camps, police said.

Counter-rally called by mayor

Opponents of the rally had called on the city's residents to stage a peaceful counter-protest and block the demonstration.

City authorities meanwhile said a "human chain" of 15,000 people had formed on the other side of the Elbe river to prevent the march.

A city hall spokesman said this rally, called by mayor Helma Orosz, was "a symbolic action" to show Dresden was "a city open to the world, opposed to violence and xenophobia."

Alliance spokesman Stefan Thiele told AFP earlier that more than 10,000 people had succeeded in blocking access to the neo-Nazis' rallying point, meaning that "the march is not nearly as large as in the past."

"Dresden without Nazis" said 500 neo-Nazis had attacked an underground cultural centre, injuring several people.

An attempt to ban the march, traditionally one of the largest assemblies of German neo-Nazis, was turned down by a local court on Thursday.

"Neo-Nazis aren't just a regional problem... the whole world is concerned," one union leader, Frank Werneke, said in a statement earlier this week after the court decision.

Historic city destroyed

A massive bombing raid in February 1945 on Dresden, previously almost untouched by the allied air assault on Nazi Germany, sparked a firestorm which destroyed much of the historic city and killed some 25,000 people.

Dresden was reduced to rubble within hours in the British and US bombing of February 13-14, 1945.

Among those who perished were hundreds of refugees who had fled the horrors of the Eastern front.

Critics of the attack claimed it was strategically unnecessary, as Germany was already on its knees.

- AFP