Pope Benedict XVI approved in 1980 as bishop of Munich and Freising a priest accused of child sex abuse being given Church accommodation in his diocese for therapy, the diocese said on Friday.

"It was decided in 1980 to give H. (the priest) accommodation in a rectory so that he could receive therapy. The archbishop (now Pope Benedict XVI) took part in this decision," the German diocese of Munich and Freising said in a statement, confirming a report in the Sueddeutsche Zeitung daily.

But deviating from this decision, the priest, who the Sueddeutsche said forced an 11-year-old boy to perform oral sex in Essen, was given spiritual duties in Munich, the statement said.

Between February 1980 and August 1982, when the current pope moved to the Vatican, no wrongdoing was reported. But after being transferred to the town of Grafing he was relieved of his duties in 1985 after allegations of child sex abuse, the diocese said.

A year later, in 1986, he was given an 18-month suspended jail sentence -- later extended to five years -- and fined 4,000 marks for the sexual abuse of minors, but he was subsequently given additional duties and still works to this day, the diocese said.

"The repeated employment of H. in priestly spiritual duties was a bad mistake. I assume all responsibility," said former vicar-general Gerhard Gruber in the statement.

German-born Pope Benedict XVI, otherwise known as Josef Ratzinger, became pope in 2005.

The Catholic Church has been rocked anew in recent weeks by allegations of widespread child sex abuse in Germany, as well as in Austria and the Netherlands.

On Friday the pope met at the Vatican with Germany's top Catholic cleric, Archbishop Robert Zollitsch, to discuss the scandal.