The 42-year-old co-chair of Germany's AfD party was accused of lying to the state electoral committee over financing for the party's 2014 state election campaign in Saxony. But Petry denied these accusations.
The state committee in Dresden's unanimous vote on Thursday in favour of abolishing Petry’s immunity means that an investigation of allegations that she lied under oath can now be pursued.
German prosecutors began preliminary investigations into the financing of Petry's campaign in May last year.
Petry had considered walking away from politics earlier this year. In April she decided not to campaign as the frontrunner for her party in the upcoming September 24th federal elections.