Anglican Canon Simon Tatton-Brown also told a gruesome tale of the real Santa’s role in a plot to butcher kids and turn them into ham.
Furious parents at the school, have accused him of ruining their children’s Christmas.
And several have vowed to boycott a Christmas Carol concert at his church.
Linzi Merritt, whose son Levi, nine, attends the school in Chippenham, Wilts, said: “We wouldn’t just walk into the church during one of his services and tell everyone that Jesus isn’t real.”
Canon Tatton-Brown upset dozens of children at Charter Primary School when they were called in for assembly.
He said a pre-planned talk had to be scrapped because of technical difficulties and spoke about the festive season instead.
And he reduced youngsters to tears as he revealed that Santa was a fictional character based on the 4th Century St Nicholas.
He said a myth had built round St Nick as he used to hand out gifts to the poor.
The vicar recounted a gruesome legend about how three children were slaughtered by an evil butcher then put in a barrel to be cured and sold as ham.
But he added that St Nick used his prayers to bring the victims back to life.
Linzi added: “Loads of kids went home crying - it has ruined Christmas for them.”
Kerry Butler added: “All the parents here are very upset. He’s coming back to the school for the carol concert. After this I don’t understand why he is allowed back.”
Last night Canon Tatton-Brown apologised.
He said: “I didn’t intended to upset anyone or to dispel children’s beliefs in Santa Claus, but I accept I was wrong.
“I understand that people are disappointed. I got it wrong. It wasn’t intentional. I can’t undo it.”
Headteacher Sarah Flack said she had accepted his apology.
December 14, 2013 6:19 AM