The English Defence League are marching through the centre of Ashton-Under-Lyne. At least 200 of the group's supporters have joined the protest.
Greater Manchester Police insist an official EDL organiser told them that the event was cancelled.
However, a large police operation is still in place and they are "continuing to manage numbers".
Around 20 people, representing Unite Against Fascism, are holding their own counter demonstration at the same time.