German authorities have banned some retailers from selling the energy drink Red Bull cola, as the country considers a nationwide ban, after traces of cocaine were found in it.

A food safety institute in the German state of North-Rhine Westphalia found the drug during a test on Red Bull samples, the UK newspaper Daily Mail reported.

"The institute examined Red Bull cola in an elaborate chemical process and found traces of cocaine," Bernhard Kuehnle, head of the food safety department at the federal ministry for consumer protection said.

While the levels of the drug found do not pose a health threat, it is still illegal. The contamination would require the drink to be classified as a narcotic, not a foodstuff.

Red Bull argues the drink contains de-cocainized extract of coca leaf, which is used as natural flavoring in foods worldwide.

The company also claimed the coca leaf extract is considered safe in the EU and in the US.