One of Australia's most senior Catholics has suggested gay teachers would be more acceptable at religious schools if they lived far away from the school and their relationships were less visible.

Catholic Archbishop of Melbourne Peter Comensoli gave evidence to an urgent Senate inquiry on Monday ahead of federal government plans to strip schools of the right to expel LGBTI pupils.

Catholic Archbishop of Melbourne Peter Comensoli. Credit:Eddie Jim

Religious schools have faced resistance from parents and alumni as they fight to retain similar laws allowing them to hire and fire teachers on the basis of sexual orientation or gender identity.

Asked if a gay teacher at a Catholic school could get married without being fired, Archbishop Comensoli suggested it would depend on how visible their relationship was at the school and whether the teacher would still publicly support the school's teachings.