Cardinal George Pell has been accused of dismissing a victim’s accusations against a pedophile priest at a Victorian Catholic school.
Timothy Green, 53, told the abuse royal commission that he told then Father Pell that something had to be done about Brother Edward Dowlan touching boys.
"Father Pell said don't be ridiculous and walked off," Mr Green said.
Commission chair Justice Peter McClellan said the commissioners expect to make a finding about what Cardinal Pell was told as it relates to how the church responded to allegations overall.
Counsel Peter Gray SC said he had been instructed that the church would not seek to dismiss Mr Green’s claims.
"Cardinal Pell, as Mr Green has now noted in his statement, has a different recollection. Mr Gray has acknowledged that and that no doubt will be what the Cardinal says."
Cardinal Pell is expected to be asked to provide a statement to the commission.
The accusation came as further allegations emerged the cardinal had helped child-molesting priest Gerald Ridsdale move parishes in Victoria years before the latter faced charges.
The cardinal, who now holds the senior position of Prefect for the Secretariat for the Economy in the Vatican, was part of a church group called the College of Consultors which in 1982 discussed moving Ridsdale from the Mortlake parish.
However, no reason for the transfer was recorded in the minutes.
Cardinal Pell has always denied any knowledge of child abuse in the Ballarat bishopric.
Ridsdale, 81, first faced court over child abuse charges in 1993.
He is serving a jail sentence for 30 offences committed against 14 children, having previously pleaded guilty to 138 assaults against children committed from the 1960s-80s.
He will be eligible for parole in 2019.
Ridsdale is set to give evidence at the royal commission via video-link.