The pop superstar, who is a fervent follower of Jewish faith Kabbalah, admits she did consider sidestepping the issue and not mentioning it in the film, but felt she owed it to the couple to go there.
Appearing on news show Nightline on Thursday (12Jan12), Madonna said, "I think it was something that was a real shadow that they had to live under. That's a huge libellous accusation.
"I do not believe they were Nazi sympathisers. He (Edward) did have a meeting with Hitler but so did a lot of heads of states, and that didn't make them a Nazi sympathiser.
"I think people started to spin this tale and this yarn and it was easy for a lot of people to put that label on them."
And Madonna also dismissed FBI reports suggesting the infamous couple was close to Hitler and the Nazis.
She added, "First of all, the FBI are notorious for lying and second of all there is actually no empirical evidence that can prove that they were Nazis or Nazi sympathisers."