The Australian arm of German retailer Aldi is suing rival chain Coles over alleged misleading advertisements broadcast over the Christmas period.

In legal action instigated on Christmas Eve, Aldi claims Coles' advertisements stated items such as turkeys, hams and mangoes were cheaper at Coles than in any other supermarket.

Aldi disputes this, saying their products were the same price or cheaper than each mentioned in the Coles advertisement, International Supermarket News reported.

Aldi is asking that the Federal Court of Australia prevent Coles from making such claims in the future and broadcast corrections. The company is also seeking damages and costs over the matter.

The court hearing on the issue will take place on 5 February.