Rev Simon Sayers is alleged to have indecently assaulted his victim in Islington during the early 1990s.

He has been suspended from his position as the rector of two churches in Hampshire - St James Church, Emsworth, and St Thomas a Becket, Warblington - while detectives probe the claims.

Parishioners were informed about the investigation by the Bishop of Portsmouth, the Rt Rev Christopher Foster, before services yesterday morning.

A Metropolitan Police spokesman said Rev Sayers had been arrested and bailed until a date in early April.

He said: "Detectives from the Met's Sexual Offences, Exploitation and Child Abuse Command are investigating allegations of non-recent indecent assault.

"The offences are alleged to have taken place in the Islington area during the early 90s.

"A 55-year-old man was arrested on 23 January and has been bailed to return, pending further enquiries, on a date in early April. Enquiries continue."

A spokesman for the Diocese of Portsmouth said: "We are aware of an ongoing police investigation into a serious allegation made against the Rev Simon Sayers, the rector of St James Church, Emsworth, and St Thomas a Becket, Warblington.

"Because the investigation is ongoing, we can make no further comment at the moment. The bishop has suspended the Rev Simon Sayers while the investigation takes place, and is making alternative arrangements for ministry in the parish. Our prayers are with all of those involved in this difficult situation."