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STORY: German Chancellor Olaf Scholz appears to have fended off a far right victory in his home state on Sunday.

Early exit polls showed Sholz's Social Democrats (SDP) scored almost 31% of the vote in the Brandburg state election over Alternative for Germany (AfD), closer to 29%.

The SDP has governed Bradenburg, the state that surrounds the capital Berlin, since German reunification in 1990.

An AfD win would have been a humiliating blow to Scholz's hopes for a second term.

He is already the least popular chancellor on record.

However, the victory is unlikely to give Scholz a real boost.

There is growing debate within the SPD over whether he is the right person to lead the party into next year's federal election.

Critics point to what they say is hesitant leadership and poor communication skills.

Brandenburg's popular premier and fellow Social Democrat Dietmar Woidke had distanced himself from Scholz during the campaign.

On Sunday Woidke said despite the victory, the exit polls being so close was alarming:

“When an openly, in big parts and overall openly right-wing extremist party in our state scores around 30% of votes, it’s hugely alarming for all of us, for all democrats, for everyone who stands up for freedom, openness and tolerance. Despite all the pride we feel today due to the good result, we must take this seriously. We must continue the debate after this election campaign. Brandenburg only has a chance if Brandenburg remains a liberal-minded and tolerant state.”

While Scholz declared the outcome a significant success for his party, they are struggling nationally, polling at just 15%, behind the AfD at 20% and the opposition conservatives at 32%.

The election did see an increased voter turnout at 73%, up from 61% in the previous election.

But many who voted for the SDP reportedly chose the party to block the AfD rather than out of strong support.

Last month, the AfD became the first far-right party to win a state election in Germany since World War 2.

It has gained traction on anxiety over a cost-of-living crisis in Europe's largest economy, immigration and a possible escalation of the war in Ukraine.