German Chancellor Olaf Scholz has expressed alarm after the right-wing Alternative for Germany party had big wins in two former East German states on Sunday.

The AfD emerged as the leading party in the state of Thuringia, and finished a close second in Saxony.

It became the first time a party labeled as far-right won in an election for a state legislature in Germany since World War Two.

Some AfD politicians have made controversial statements that supported Nazism and were discriminatory against Muslims, prompting critics to call the party far-right.

Local media late Sunday called the election a turning point.

A man in his 30s told NHK in Berlin on Monday that the "election results were shocking." He also said "a party that says no foreigners should be allowed in this country is very undemocratic."

Another man in his 60s called the result "mainly due to the fact that many voters are very disappointed with the policies of the current federal government."

Reuters news agency on Monday reported that the German chancellor released a statement, that said the "election results are bitter."

He also said "Our country cannot and must not get used to this. The AfD is damaging Germany."

Scholz stressed that he will take measures to try to ensure the AfD will not gain further support.

Votes for Scholz's center-left Social Democratic Party reportedly fell to a record low in Thuringia state elections.

The results are expected to give a major blow to the coalition government as it braces for the national election next year.