Mr Griffin was questioned by officers in Halifax in December
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The leader of the British National Party is to stand in one of West Yorkshire's most racially sensitive constituencies at the General Election.
Nick Griffin, 45, who was last month arrested on suspicion of incitement to commit racial hatred, is to seek election in Keighley, the BNP has said.
The seat is currently held by Labour MP Ann Cryer, who was elected in 1997.
Ms Cryer said the BNP did not "offer solutions" and accused it of using the town for its own political gain.
'Stir trouble'
"Since June of this year, the BNP has had two district councillors in Keighley and also won a town council seat. They have done and achieved nothing.
"I cannot think that anyone, who lives in Wales, and knows absolutely nothing of the issues and problems in Keighley, will offer anything to Keighley.
"That, however, is the point - the BNP does not offer solutions, it seeks to stir trouble, prey on fears and divide communities for its own political gain."
A BNP spokesman told BBC News that Mr Griffin had decided to stand after being asked to do so by "an assortment of people" in Keighley.
Campaign launch
There was strong support for the BNP in the town and a general dissatisfaction with Ann Cryer, he added.
"We have a number of elected councillors in the area. One candidate - councillor Angela Clarke - got more than 50% of the vote when she was elected to the town council (at the end of last year).
He added: "We are not a single issue party. We are concerned about drug abuse, crime, social cohesion, excessive taxation to fund a politically correct government and organisations."
Speaking in December after his release from custody, Mr Griffin described his arrest as "politically motivated".
He was questioned by officers in Halifax as part of the inquiry into issues raised by the BBC's Secret Agent documentary.
Twelve members of his party have been arrested during the investigation, including a number of men from Keighley.
The BNP says it will officially launch its election campaign in the next week to 10 days.