Fr O'Riordan said the school had secured one month's salary for the teacher.
A spokesperson for the Limerick Diocese insisted that the Department of Education had sole responsibility for funding teaching posts.
"Few parishes would have items of any significant value, certainly not of the order that would fund a teaching post for anything other than the short term," it stated.
The Department said the decision to take a teacher from the school is based on a reduction in pupils attending. It had allocated a further teaching post on the basis at least 227 pupils would attend in September, but only 215 enrolled.
FEW parishes would have enough gold valuables to fund a long-term teaching post needed in one of the most deprived parts of Limerick city, a Church Diocese has warned.
It follows an appeal by Fr Tony O'Riordan, the parish priest of Moyross, for churches around the country to sell any unused gold to help fund a teaching post in the Corpus Christi Primary School in Moyross.
Fr O'Riordan said the removal of funding for a teaching post at the school would result in the merger of two junior infant classes - with 32 pupils being taught by one teacher.