According to a Sept. 19 statement from the diocese, a woman accused the Rev. Scott Courtney of sexually abusing her in 1993 when she was a minor and Courtney was a seminarian in Lincoln.
Diocese officials "promptly" reported the allegations to local law enforcement, but no criminal charges were filed, according to the statement.
The diocese conducted an independent investigation in line with church policy, church officials said.
Courtney has denied the allegations made against him, the diocese said, but Bishop James Conley limited his duties to "providing spiritual support to the retired priests of the Diocese of Lincoln."
It's the second time Courtney has been reassigned following allegations of sexual misconduct.
In 2018, the Lincoln Diocese assigned Courtney to minister to prisons, nursing and retirement homes, and to provide administrative assistance to the chancery after allegations he had sexual contact with a woman.
The woman was not a current or past parishioner of Courtney's, the church said. The incident was not reported to law enforcement.
The diocese removed Courtney from two parishes in rural Adams County following "a professional evaluation and a period of personal renewal, and hearing from the ministerial conduct board."
Courtney had been with the Sacred Heart parish in Roseland and the Assumption parish in Juniata at the time of his removal.
Nebraska law enforcement officials identified 258 documented victims of sexual abuse and misconduct by 57 Catholic Church officials going back decades in a 2021 report.
The victims included 97 from the Lincoln Diocese, 158 from the Omaha Diocese, and three from the Grand Island Diocese.
The Nebraska Attorney General was unable to prosecute any of the abusers, however, largely due to Nebraska's statute of limitations laws.
An effort to eliminate Nebraska's statute of limitations law, which allows a victim of sexual abuse 12 years after their 21st birthday to file a lawsuit, did not pass the Legislature.