Mahmoud Katusa upon his release
Mahmoud Katusa upon his releaseYonatan Sindel/Flash90

Mahmoud Katusa, the 46-year-old Palestinian Authority resident suspected of raping a Jewish 7-year-old girl in an nationalistically-motivated assault, is suing Israeli police for compensation for the time he spent under arrest, News 13 reported.

The suit, which is worth millions of shekels, will also be against the teacher who pointed him out as a suspect..

Nashaf Darwish, Katusa's attorney, said: "This case is a combination of police negligence in investigations and a large amount of racism. The source of the racism started with what the teacher told the mother. It's a Palestinian Dreyfus, there is no question, and it cannot be otherwise."

In June, Katusa was indicted for kidnapping and raping a 7-year-old schoolgirl. The indictment was later nullified and Katusa released due to a "lack of evidence," despite the serious problems with accepting his alibi for the rape.

However, the investigation is still ongoing and Katusa is still a suspect in the rape.