Pope disciplines prominent priest after abuse case

The statement said Maciel had been "invited" to withdraw to "a reserved life of prayer and penitence and not carry out his ministry in public."

It did not specify whether the Vatican concluded that the allegations were true but said that, because of Maciel's age and frail health, it had decided not to launch a full-scale Church trial.

The Vatican decision was welcomed by groups whose members say they were victims of widespread sexual abuse by priests, a scandal that rocked the U.S. Church in 2002.

"We are very gratified that Vatican officials have taken this wise and compassionate step," said David Clohessy, national director of the U.S.-based Survivors Network of those Abused by Priests.

"Today's news vindicates the courageous, long suffering and heroic men who have lived for decades with deep pain caused by Maciel's crimes," he said.

While the statement said the move against Maciel should be no reflection on his followers and supporters, Church experts said the move could be highly demoralizing for the group.

"For a religious order that is relatively young in Church terms, the position of the founder is absolutely crucial," said John Wilkins, a leading British Catholic writer. "This can be devastating. It is a dramatic development," he told Reuters.

(Additional reporting by Cyntia Barrera in Mexico City)