Archbishop Cardinal George Pell has referred matters regarding his handling of a sex abuse case to an independent panel for review.
Cardinal Pell is under scrutiny for dismissing allegations of abuse against a priest in 2003, after accepting his claim the sex act was consensual.
The Archbishop has also been accused of misleading the victim, telling him there were no other reports of abuse by the priest when he had evidence to the contrary.
There have now been calls for Cardinal Pell to be stood down.
The claims came to light just days before the arrival of the Pope in Sydney for World Youth Day.
Greens senator Christine Milne last night pointed to the case of former Anglican bishop Peter Hollingworth, who stood down as governor-general over claims he mishandled a sex abuse claim.
"I think Cardinal Pell needs to really think about his leadership role in the church in Australia," Senator Milne told ABC Television's Q and A program.
"I think he needs to think about whether he's putting his own aspirations in terms of World Youth Day ahead of the church."
The matter has been handed to an independent panel, shard by former supreme court judge Bill Priestley QC who will advise the Archbishop on his options.