Richard Williamson sparked outrage by claiming no more than 300,000 Jews were killed by the Nazis during the Second World War.
Bishop Williamson, whose views on the Holocaust are his own and are not the opinion of the group, also said: "I believe there were no gas chambers."
He is one of four bishops of the Society of St Pius X (SSPX), set up in opposition to Vatican reforms, whose exclusion from the Catholic Church was lifted in January.
Now SSPX wants to buy the defunct St George's church in Gorton from the Church of England.
The Church Commissioners - the body that manages the C of E's historic assets - is consulting on the sale.
Objectors have until March 31 to raise concerns. It is understood the Bishop of Manchester, chair of the national council of Christians and Jews, has grave reservations about the move.
SSPX was formed in 1970 by the French Catholic archbishop Marcel Lefebvre. It holds masses in Latin and opposes church `modernisation' - including dialogue with other religious faiths.
Lefebvre `ordained' the four bishops in 1988, without the authority of the Pope. The four were thrown out of the church.
In January, as the excommunication was lifted, Williamson's Holocaust comments were broadcast on Swedish television. The government of Argentina - where he was living at the time - gave him 10 days to leave.
According to his internet bog he is now in London. An SSPX statement said his views `in no way' reflected those of the group.
But it emerged last month a second SSPX member, Floriano Abrahamowicz, was expelled for saying Holocaust gas chambers were only `for disinfection'.
Jackie Pearcey, Lib Dem councillor for Gorton North, said: "We have all manner of religious groups here but to invite the `Church of Latter Day Holocaust-Deniers' is a matter of real concern."
A C of E spokesman said: "Decisions regarding the future of St George's church are now part of a formal process that is being managed by the Church Commissioners.
"If there are objections to the proposal, the details will be sent to the Bishop of Manchester for his comments.
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