Fr John Reid, 69, pleaded guilty to defrauding St Cuthbert's Church in Stockton of donation money over a four-year period.
Parishioners believed the money was going toward the upkeep of the church building and to charities but instead Fr John spent the money on foreign travel and at restaurants.
It is believed that Fr John had taken at least £50,000 of church money between June 2009 and October 2013.
Fr John was also accused of failing to keep proper accounts and abusing his position.
At a previous hearing, Fr John pleaded not guilty to all the charges but Durham Crown Court heard he had changed his plea and admitted to one charge of fraud.
Following his arrest in 2014, Fr John voluntarily withdrew from his ministry.
Fr John will be sentenced on 7 April.