The parents say he has ruined the children's Christmas.
But Father Dino Bottino, a parish priest in Novara, says he had not intend to hurt anyone.
He says it is his duty to make clear the reality of Jesus, and distinguish it from the story of Father Christmas which is a fable just like Cinderella or Snow White.
A local paper published complaints from dozens of parents. "You've ruined my children's Christmas," said one mother.
But an unrepentant Fr Bottino called it his duty to set the record straight.
"I told the children that Father Christmas was an invention that had nothing to do with the Christian Christmas story," he said.
"And I would repeat it again, if I had the chance," he added.
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(Source: ABC)