Steve Moxon, a former government whistle-blower, is standing in the Dore and Totley ward.
On his blog he said Norwegian killer Anders Breivik's thesis on Islam and political correctness was accurate.
Mr Moxon said he "resolutely does not agree with" his crimes. UKIP said his comments were at odds with its policy.
Breivik, 33, killed 77 people in Norway last July. He is currently on trial accused of terrorism and mass murder.
Mr Moxon, a former civil servant, first came to prominence in 2004 when he made claims that key checks were waived by immigration staff in Sheffield to make the numbers coming to Britain seem less dramatic when the EU expanded.
He told BBC Radio Sheffield he had been "amicably" removed as a candidate but remained a member of UKIP.
He said: "I would stress that I do not in any way agree with Anders Breivik's actions. » | Tuesday, May 01, 2012
