Rev Christopher Goble appeared at Warwick Crown Court on Thursday where he pleaded guilty to having the images, 112 of which were in the "most serious category", according to the CPS.
Goble, who served in south Warwickshire, was suspended from ministry "with immediate effect" on being charged, the Diocese of Coventry said.
In court, Goble, of Ilmington, Warwickshire, admitted three counts of making indecent images of children.
Police executed a warrant to search his home on 1st October, and a chat message was found on his phone in which 44-year-old Goble admitted having a sexual interest in children.
It is understood none of the victims are children from within his ministry.
The case has been adjourned until the week of 9th December for sentencing.
Senior Crown prosecutor Andrew Crump, of CPS West Midlands, said: "Christopher Goble is a vicar who, in his position of authority, should have been safeguarding children.
"This case sends a clear message that viewing indecent images of children is a crime and the CPS will prosecute those who commit these offences."
A Diocese of Coventry spokesman said: "Christopher Goble was charged with the offences, following his arrest on 1st October.
"He was suspended from ministry with immediate effect.
"We offer an unreserved apology to all those affected by these crimes, acknowledging how difficult and distressing it is.
"The diocese takes any allegations of criminal activity very seriously, and is committed to being a safer place for all - but we can never be complacent.
"We urge anyone with relevant information to contact Warwickshire Police or our Diocesan Safeguarding Team, on 024 7652 1345.
"We are putting support systems in place to assist those who need it.
"Please join us in praying for everyone who has been affected by these crimes."
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