Most Rev Justin Welby's comments come as the Church of England releases a new document outlining its vision for education in England.
He unveiled the document, called 'Church of England Vision for Education: Deeply Christian, Serving the Common Good,' at the Anglican Academy and Secondary School Heads Conference in Coventry on Friday.
The Anglican Church currently runs 4,500 primary schools and 200 secondary schools in England and it is thought 15 million people alive today attended one of its schools.
The Vision document has four main elements: equipping children academically and emotionally for the world; providing places of healing for children who have mental health problems or who've suffered bad experiences; providing a welcoming place for all rather than just Christians, and; upholding the dignity and respect of each individual, who is made by God.
Speaking before the event the Archbishop said: "In the midst of these economic, social and political challenges, Church of England schools aim to provide an education that is deeply and authentically Christian, but also inclusive and embracing of diversity.
"The Prime Minister spoke this month in support of more free schools opening, particularly in areas of social and economic deprivation. It is an opportunity the Church plans to seize, and we are drawing up ambitious plans to open many more free schools.
"Church schools may be viewed with suspicion in some quarters. It is my passionate belief that they are a gift to our society - serving the common good and equipping every person to flourish in a challenging, uncertain world."
