Fashion designer John Galliano has lost an unfair dismissal against Christian Dior – and been ordered to pay the top fashion house a symbolic €1.

The Gibraltar born designer was sacked by Dior after he was filmed telling two Italian women that Jews should be gassed. The incident took place in December 2010.

The 54-year-old brought a law suit in a Paris employment court against the fashion house. He claimed that the “unfair dismissal” has lost him £10 million which he sought to retrieve from Dior.

According to reports, he told the court: "I can't let the 17 years I spent and enjoyed at Dior be blackened like this. During these years as creative director of this house, I did not realise that its success, multiplying its sales by four, came at a destructive and exorbitant cost: my physical and mental health.

“Always more work, always more obligations, always more pressure, a dangerous and pathological spiral, without control."

But the court dismissed his case, and he was ordered to pay Dior €1. It is not known whether Mr Galliano will appeal the decision.

In his 2010 antisemitic rant, Mr Galliano, who is now creative director of Maison Martin Margiela, was filmed telling the unnamed women: “People like you ought to be dead, your mothers, your forefathers would all be ****ing gassed. I love Hitler."

Mr Galliano was convicted in 2011 in a French court for making the antisemitic slurs and fired from his position as creative director at Christian Dior.

The incident is understood to have upset Dior chief executive Sidney Toledano, who is Jewish. Israeli actress Natalie Portman, who models the brand’s Miss Dior fragrance, condemned Mr Galliano after the video surfaced.