The cleric is a controversial figure
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Scotland Yard are investigating alleged remarks by Muslim cleric Sheikh Omar Bakri Muhammad that could have broken terror or racism legislation.
In a live webcast, the cleric apparently suggests young people should join al-Qaeda and describes Osama Bin Laden as an "emir".
MP Andrew Dismore said the home secretary should "throw him out of the country if we can't prosecute him".
But the cleric said he had been quoted out of context.
Mr Dismore said he wanted police to look at whether serious offences such as incitment to commit terrorist acts and incitement to murder had been committed.
The MP said the cleric should be stripped of his right to remain in the UK.
The cleric, who came to the UK from Saudi Arabia in 1985 fearing persecution for membership of a banned group, said the webcasts were a private matter and that police would be wasting their time investigating him.
"I don't think it's advisable for anybody from the media to take things out of context and to try to interpret it in a way to provoke youth or the government against me or Islam."
A Scotland Yard spokeswoman said: "We are assessing purported comments made by an individual to determine whether a criminal offence has been committed."
The cleric's influence is dismissed by mainstream Muslims in the UK.