On Wednesday night, residents of the suburb of Camden attended the local civic centre to voice their objection to the proposed Islamic school which would cater to 1200 Muslim students.
Reverend Nile was invited to attend the centre and told the Australian Broadcasting Corporation (ABC) radio that all Aussies celebrating Christmas would be condemned by the Quran.
"So that means all the Aussies are celebrating Carols by Candlelight this week all over Australia, millions of Australians, are condemned by the Quran. And sincere Moslems are supposed to believe this book, the Quran, as the word of God," said Reverend Nile.
Polices were called in after people wanting to attend the centre were blocked from entering it due to overcrowding. Radio stations reported protesters were seen outside voicing their anger to the construction of the school.
A police spokeswoman said no arrest was made and the event passed without incident. In November, 2,000 Camden residents attended a short protest meeting against the establishment of the school here.