"That's not Christmas," Archbishop Fabriciano Sigampa of the northern city of Resistencia said during mass, insisting that children should not confuse celebrating the birth of Christ "with a fat man dressed in red."
Sigampa's ire was aroused by plans for a snow covered cabin in the city's main square where a Father Christmas figure would hear children's wishes and receive donated toys to be given out to poor children.
"Surely, in the coming days there will be a deluge of advertisements after they inaugurate the house where a fat man dressed in red lives. And we should not confuse, we should not confuse Christmas with that."
He said children "should know that, in reality, the gifts come from the efforts of their parents and with the help of Jesus."
After the bishop aired his objections, organizers dropped plans for a Santa and renamed the cabin the "House of Christmas."
Sigampa has attracted controversy before.
In the 1990s, he caused a stir by ordering a mural for the cathedral of the northern city of La Rioja that showed the Virgin Mary with then president Carlos Menem and members of the Catholic hierarchy.