Revd Robert West, who stood as a candidate for the British National Party, told children at Walton Girls High School that "any Non-Christian God is demonic" in November 2013.
Pupils complained about the man, who has no connection to the Church of England, and the National College for Teaching and Leadership launched an investigation.
Revd West set up his own church at a house in Holbeach so he could preach "traditional bible beliefs".
A hearing at the NCTL heard how he said "Muslims worship the devil" and that "there is one god and if not worshipping him, then you are worshipping the devil" whilst working as a supply teacher at the school.
When asked by a student whether there was anything wrong with being a Muslim he replied "yes because we are fighting them".
In an email to the school principal he wrote: "I am not going to bow down to their racist bullying: I am not going to programme my students with utter trash about Mohammedanism, a religion whose textbook, the Koran, has been burnt for atrocities against humanity.
"I am not going to pretend that people really did not fight, and kill, over religion, when they did, and still do.
"It is about time that YOU put the teacher back in charge and got off your high horse about the programmed little 16 year olds who are there to learn, and not to lead.
"I am not prepared to teach trash to satisfy politically correct criteria set in the Education Department who are trying to give the false impression in a multi faith (multi conflict) society that the history of religion has been one long saunter written by Walt Disney with foxes dancing and singing with chickens instead of eating them!"
Revd West denied being intolerant to other faiths and having a lack of respect for the belief of others.
A panel said it was satisfied Revd West's conduct "involved breaches of the Teachers' Standards".
He is now prohibited from teaching indefinitely and cannot teach in any school, sixth form college, relevant youth accommodation or children's home in England.
He may apply for the prohibition order to be set aside, but not until May 2018.