In an outspoken newspaper article last month, Mr Foster accused Mr Corbyn’s supporters of using “aggressive” and “divisive” tactics to exclude critics of the Labour leader.
The article was entitled: “Why I despise Jeremy Corbyn and his Nazi stormtroopers”.
It was published after the High Court ruled against his attempt to stop Labour from allowing Mr Corbyn to automatically stand for re-election.
“To me, respect for the rule of law is fundamental to a democracy,” he wrote in the Mail on Sunday.
“Once political parties believe they are above the law it ends with all opposition silenced, whether it is my grandparents in Dachau, or the Left in Erdogan’s Turkey rounded up and held uncharged in prison.
“The courts decided that the rules as they stand allowed it. This decision advantaged Corbyn and his Sturm Abteilung (stormtroopers)…”
The Nazi SA also known as the Brownshirts, were the paramilitary wing of the Nazi Party.
The Labour party said it had barred Mr Foster for breaching a party leadership rule that “all eligible members and supporters must conduct themselves in a calm and polite manner and be respectful to each other at all times”.
In his article Mr Foster recalled several “threatening” incidents aimed at Corbyn opponents, including a brick thrown through the window of former leadership contender Angela Eagle’s constituency office.
He said there was a “divisive, aggressive holier-than-thou cadre of hard-Left socialists” supporting Mr Corbyn.
“In the midst of this, something is rotten. You are either with them, or you are labelled as being against them and so excluded, briefed against, often threatened and intimidated,” he said.
“If you are like me, a Jewish donor to Labour, you are smeared as a Blairite conspirator, plotting to falsely use the accusation of anti-Semitism to damage the Left.”
He added: “Corbyn is not just bad for Labour, he is bad for Britain’s democracy.”
The prominent donor, who unsuccessfully ran for the seat of Camborne and Redruth in 2015, was informed of his suspension in a letter from party general secretary Iain McNicol last week.
Mr McNicol wrote: “It is important that these allegations are investigated and the NEC will be asked to authorise a full report to be drawn up with recommendations for disciplinary action if appropriate”.
The suspension means Mr Foster will not be able to take part in the leadership contest between Mr Corbyn and challenger Owen Smith.
News Source SkyNews