Police were told about allegations of child sex abuse made against the priest at the centre of cover-up claims in Londonderry, the Catholic Church has said.
We’re sorry. This video is unavailable from your location.
In a statement, a spokesman for Bishop Seamus Hegarty said senior members of the RUC were made aware of the case in 1995.
Dr Hegarty is facing allegations that he was involved in an out-of-court compensation deal in which he was named as a defendant.
But Bishop Hegarty defended his handling of the case he was party to, which saw one of his clerics accused of abusing a girl over a 10-year period starting in 1979 when she was only eight.
He said: "A confidentiality agreement was not proposed by the diocese, but was proposed to the diocese by one of the other parties, and, to facilitate a settlement, the diocese agreed."
The Belfast Telegraph reported that a confidentiality agreement was made between the victim and the Catholic Church, which saw £12,000 handed over to the victim in compensation, along with a letter of apology from the priest named as her abuser.
The settlement did not include any admission of liability by the Church.
Statement
The statement issued on Thursday evening stated that Bishop Hegarty, his predecessor Bishop Edward Daly and the priest were sued by the person making the allegation.
It added: "After a protracted period of time, the priest paid £12,000 to (the victim). The diocese made no contribution to the money paid by the priest.
"The case against Bishop Daly and Bishop Hegarty was dismissed.
"A confidentiality agreement was not proposed by the diocese, but was proposed to the diocese by one of the other parties, and, to facilitate a settlement, the diocese agreed - this agreement was in the year 2000, five years after the civil authorities were first aware of the matter."
Bishop Edward Daly, who was named in the court papers, was best known for his involvement in civil rights marches in Londonderry.
The iconic images of him waving a white handkerchief on Bloody Sunday as he accompanied the body of a dying man were broadcast around the world.
In an interview with the Belfast Telegraph, the alleged victim claimed her abuser warned her she would be "punished by God" if she spoke out.
She only told her family about her ordeal on her 18th birthday.
The priest at the centre of the abuse accusations is said to have been welcomed into the girl's home by her parents.
The victim's mother told the Belfast Telegraph: "That was the start of our nightmare because, as parents, you are supposed to protect your child.
"But we felt we had let this monster into our home without question."
The victim and her family have criticised the Catholic Church's response since the allegations of abuse were first made.
On Thursday, Bishop Hegarty's statement said: "It is important to note that the diocese is today committed to the standards and guidance in the Safeguarding Children document; this involves a full and immediate communication of allegations to the civil authorities."
Earlier this week, Dr Hegarty apologised to victims of abuse in Catholic Church run institutions.
© UTV News