Islam's Sharia law is legally binding for civil disputes in Austria, a court in the country's capital has confirmed.
Two Muslim men had used a Sharia arbitration tribunal to settle a case of one owing the other €320,000 (£277,000).
The "loser" in the case had then appealed to the Vienna Regional Court for Civil Law Matters, arguing that rulings made under Sharia had no standing in Austria.
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But the court upheld the tribunal's decision.
The Vienna Regional Court for Civil Law Matters (pictured) upheld the Sharia tribunal's decision
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Judges found it was permissible for private individuals to settle civil disputes through any manner they saw fit, including an Islamic tribunal.
And their decision has sparked fury from politicians on the Austrian right.
The Deputy Governor of Upper Austria, Manfred Haimbuchner, said that "Sharia is incompatible with our core values".
He warned that the case was "another example of how our legal system and our constitutional state have nothing to counter the gradual appropriation of Islam".
As a result, the country's Integration Minister, Claudia Plakolm, has vowed to act.
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Asutria's Integration Minister Claudia Plakolm has vowed to act
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Plakolm had been tasked with reviewing existing laws in May and was to develop proposals by the end of this year to ensure that Sharia law "cannot be applied in the future, for example, in the area of registry offices".
"Sharia has nothing to do with Austria and the principles of our constitution, and it should remain that way," Plakolm has now said.
"Sharia rules do not belong in Austria, and therefore I assume that we will soon receive the relevant proposals."
The right-wing Freedom Party's constitutional spokesman Michael Schilchegger added: "If Austrian courts now also recognize arbitration awards based on Sharia law, they will be submitting to the will of fanatical Islamists."
The Vienna court said that Sharia would only apply to civil matters - and would remain irrelevant in criminal cases.
The Vienna court said that Sharia would only apply to civil matters - and would remain irrelevant in criminal cases (file photo)
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But the ruling also drew the fire of the Turkish Cultural Community in Austria, which said in a statement: "As Muslims in the EU, or rather in our new homeland of Austria, we must not only respect the constitution and laws, but also consult a lawyer and notary for such an agreement amounting to €320,000."
It comes a few months after Britain emerged as the "western capital" of sharia courts, with 85 Islamic councils now operating across the country since the first was established in 1982.
These religious bodies have become increasingly influential, drawing Muslims from across Europe and North America who seek religious rulings on marriage and family matters.
The councils, typically consisting of panels of Islamic scholars who are almost always male, serve as informal bodies issuing religious rulings particularly focused on marriages and divorces.