The Rev. Michael Fugee submitted his request and it was promptly accepted by Newark Archbishop John Myers on Thursday evening.
Archdiocese spokesman Jim Goodness tells The Star-Ledger of Newark Fugee remains a priest but no longer can say Mass, perform sacramental work or represent himself as an active member of the clergy.
The 52-year-old was convicted in 2003 of fondling a teenage boy. However, that verdict was vacated because of judicial error.
Fugee entered a program to avoid retrial and agreed to never again work with children.
There have been calls for the archbishop to resign after the newspaper reported Fugee had opening engaged in youth activities.