Mr McManus, a Labour member in the Beverley and Holderness constituency who stood as the parliamentary candidate for the seat in 2005, appeared to be referencing donations that Mr Watson had received from Sir Trevor Chinn, a businessman who is the vice president of the Jewish Leadership Council.
Luciana Berger, the Jewish Labour MP for Liverpool Wavertree, alerted Labour Party HQ to Mr McManus’s comments, saying: “It's antisemitic and I'd like it to be investigated." He later deleted the post and apologised to Mr Watson and the Jewish community.
Mr McManus was suspended from the party on August 6.
Momentum, the pro-Corbyn group within Labour, applauded the decision, tweeting: “Thanks to those who drew attention to the appalling, antisemitic comment made by George McManus.
"We understand that he has now rightly been suspended from Labour. We will not tolerate any antisemitism, racism or online abuse from candidates we support.”
On Thursday, Mr McManus tweeted: “I’m delighted that my Labour party suspension has been lifted. Time to get back into the ring. Britain needs a Labour government. #HopenotHate. Corbyns coming [sic].”
When asked for comment, a Labour Party spokesperson said:
"The Labour Party takes all complaints of antisemitism extremely seriously and we are committed to challenging and campaigning against it in all its forms. All complaints about antisemitism are fully investigated in line with our rules and procedures and any appropriate disciplinary action is taken."
