John Denham spoke after clashes between different groups at a new London mosque, during a march by the group Stop the Islamification of Europe.
Demonstrations by an affiliated group, the English Defence League, have led to violence in Birmingham in recent weeks.
Mr Denham said protests could get “out of control” unless action was taken.
Ten people were arrested on Friday after scuffles broke out at the site of a new five-storey mosque planned next to the Harrow Central Mosque in north-west London.
Local Muslims and members of Unite Against Fascism (UAF) confronted protesters from Stop the Islamification of Europe and chased them away.
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