The Vatican has ordered a Bishop to publicly recant statements that the Nazis murdered only a small fraction of the six million Jews officially recorded as victims of the Holocaust.
Rome has ordered Bishop Richard Williamson to step down from the hierarchy if he refuses.
Pope Benedict said he was not aware of the traditionalist's controversial views when he lifted excommunications on him and three fellow-bishops last month.
Following a storm of protest, the German Chancellor, Angela Merkl said the Vatican decision to readmit Bishop Williamson had given the impression that the Holocaust may be denied.
Rome's senior Cardinal in charge of relations with Jews acknowledged that the Vatican handled Williamson's rehabilitation very badly.
Today's Vatican statement quoted the Pope as saying he was not aware of the traditionalist's controversial views when he lifted the excommunication.
It remains to be seen how the UK bishop will respond to the ultimatum to publicly recant his views or lose his place in the hierarchy of the Church that has just readmitted him
Meanwhile, as Pope Benedict rode out one storm, another struck when the influential order, the Legionnaries of Christ, confirmed that their founder, the late Father Marcial Maciel, had fathered at least one child with a mistress.
The close confidant of the late Pope John Paul II had had already been disciplined by Pope Benedict for sexual abuse of boys and men.