GERMAN prosecutors have closed a renewed investigation into a far-right terrorist attack that killed 13 people at the Munich Oktoberfest 40 years ago.

The explosion on September 26 1980 killed attacker Gundolf Koehler. Three children were also among the dead.

Prosectors reopened the investigation in 2014, after a previously unknown witness had surfaced, but they said today that the suggestion there may have been organised neonazi involvement were not corroborated.

The anticlimax comes as Germany reels from revelations of the scale of neonazi presence in its security forces. 

On June 30 it announced a total overhaul of the KSK, a military force equivalent to Britain’s SAS, over its officers’ neonazi links, a “toxic leadership culture” and for having become “partially independent” of the military chain of command.

KSK’s participation in military drills has been suspended and one company is to be disbanded following a scandal that unearthed officers performing Nazi salutes at get-togethers and the arrest of one officer whose house was found to contain explosives, a machine gun and thousands of rounds of ammunition as well as far-right magazines, neonazi stickers and an SS song book.