Reverend Jarel Robinson-Brown sparked complaints after he claimed support for the national hero Captain Tom was a “cult of White British Nationalism”.
Tributes flooded in for the veteran after it was announced he had died aged 100 after contracting coronavirus. Boris Johnson was among those paying tribute.
The Prime Minister called for a national clap for Captain Tom on Thursday evening.
Reverend Robinson-Brown responded to the news by tweeting: “The cult of Captain Tom is a cult of White British Nationalism.
“I will offer prayers for the repose of his kind and generous soul, but I will not be joining the ‘National Clap’.”
Mr Robinson-brown deleted the tweet and shared an apology after receiving fierce backlash online for his comments.
“I offer an unreserved apology for the insensitive timing and content of my tweet regarding the clap for Captain Tom," he said.
He added that he has since read and will sign the church’s digital charter, which is designed to “help make social media and the web more widely positive places”.
But the Diocese of London on Thursday said the Reverend’s comments were “unacceptable, insensitive and ill-judged” and said the Archdeacon of London will be carrying out a review.
In a statement shared on Twitter the Diocese of London said the Reverend was now receiving “racist abuse” as a result of his comments.
"Jarel Robinson-Brown's comments regarding Captain Sir Tom Moore were unacceptable, insensitive, and ill-judged," said a spokesperson from the Diocese of London.
“The fact that he immediately removed his tweet and subsequently apologised does not undo the hurt he has caused, not least to Captain Tom's family. Nor do Jarel's actions justify the racist abuse he is now receiving.
“A review is now underway, led by the Archdeacon of London. As a Church, we expect clergy to ensure that all online activity is in line with the Church of England's social media guidelines and built on truth, kindness and sensitivity to others.
“It is incumbent upon all of us to make social media and the web more widely positive places for conversations to happen.”
A petition signed by more than 3,000 people called on the Bishop of London to rescind the Reverend’s curate role after he was last month appointed to serve in the parish of All Hallows'-by-the-Tower, the oldest church in the City of London.
Sir Tom set out to raise £1,000 for NHS Charities Together by walking 100 laps of his garden before his 100th birthday last April. In doing so he raised more than £32 million for charity.
His family and the Prime Minister were among many in the UK to take part in the applause for Sir Tom on Wednesday evening at 6pm.