Nazi war crimes suspect Laszlo Csatary, who is accused of overseeing the deportation of thousands of Jews during World War II, has denied all allegations against him, his lawyer said.

Lawyer Gabor Horvath made the announcement after the 97-year-old appeared at a three-hour closed-door hearing at the prosecutor's office in Budapest.

The Nazi-hunting Simon Wiesenthal Centre accuses Csatary of organising the World War II deportation of some 16,000 Jews from the ghetto of Kosice, in present-day Slovakia, to their deaths at the Auschwitz extermination camp.

Tuesday's hearing was aimed at enabling prosecutors to lay out their evidence against Csatary, who was arrested earlier this month after apparently living for years undisturbed in Hungary.

No formal charges have yet been filed against Csatary, who was listed by the Wiesenthal Centre as its top most wanted Nazi war criminal, and is now under house arrest.

"He denied being an anti-Semite before, during and after the events of Kassa, (the Hungarian name for Kosice)," Mr Horvath said.

Csatary - who was sentenced to death in absentia in 1948 by a court in what was then Czechoslovakia - was led away in a car after Tuesday's hearing, his face hidden under a blanket.

"Much of the hearing dealt with his alleged anti-Semitism, which he denied, citing examples within his family and his circle of friends," Mr Horvath added.

Csatary also denied he was ever the commander of the Jewish ghetto of Kosice, which was then part of Nazi-allied Hungary, or that he had ever signed any documents in that capacity, Mr Horvath said.

Last week, a historian from Hungary's Holocaust museum said several documents dealing with the deportations bore Csatary's signature.

But Mr Horvath said Csatary could "easily be mistaken for someone else".

He noted that several witnesses had talked of a black uniform, when black was worn by the German forces, not the Hungarian ones.

Mr Horvath said much of the prosecution's evidence came from testimony given in previous trials against Csatary and other commanders.

The next step against Csatary is unclear, the lawyer said, noting there had been no mention at the hearing of a possible extradition procedure.

On Monday, Slovakian justice minister Tomas Borec said he wanted Csatary to be tried in his country, echoing a similar call by Slovakia's Jewish community last week.

Csatary, whose full name is Laszlo Csizsik-Csatary, was arrested on July 18 in Budapest on information from the Wiesenthal Centre.

Csatary had fled to Canada after the war but apparently lived undisturbed in Hungary for about 15 years before he was arrested.

At the time of his arrest, Efraim Zuroff, the Wiesenthal Centre's chief Nazi-hunter, urged authorities to bring Csatary to justice as quickly as possible.

"This is the debt owed to his many victims who were tortured and sent to be murdered at Auschwitz," he said.

"The passage of time does not diminish the guilt of the killers and old age should not afford protection to the perpetrators of Holocaust crimes."

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