It comes after Fr Martin Hislop, of St Luke's Church, highlighted that he had received too many complaints about parents who attended his church just to get a place at St Luke's Primary School.
His church was eventually forced to keep a register of who was attending, after parents threatened to sue because there was no proof they were going to the church, which makes their child more likely to gain a place.
St Luke's Primary School in Kingston upon Thames currently has a faith-based selection criteria, where pupils whose families went to church are more likely to get a place.
From next year, they will base admissions on how close prospective students live to the school.
According to the Daily Telegraph newspaper, Fr Martin said: "For quite some time now I have been very uncomfortable with admissions criteria for the school and in particular the need to keep a register for church attendance.
"Both the requirement for recorded attendance and the cynicism about attendance do not contribute to a positive and affirming atmosphere for the nurture of faith."
The chair of governors at St Luke's, Lucy Bird, has said Christian values will continue to drive the school despite the change in its admission policy.