Prominent US Cardinal Theodore McCarrick, 88, has resigned from the College of Cardinals following multiple allegations that he sexually abused teenage boys and adults

Pope Francis has accepted the resignation of a prominent US cardinal who is accused of sexually abusing two teenage boys and multiple adults.

Theodore McCarrick, 88, was removed from the ministry in June after an investigation found there was 'credible' evidence that he had assaulted a teenage boy while working as a priest in New York in the early 70s.

Last week another victim came forward and alleged that McCarrick, nicknamed 'Uncle Teddy', sexually abused him for two decades beginning when he was 11.

Senior US church officials have said they received three allegations of McCarrick's sexual misconduct with adults decades ago, two of which ended in settlements.

The former archbishop of Washington's alleged abuse has been referred to as an open secret in the church community.

He is one of the most high-profile Catholic leaders to face abuse allegations as the institution works to correct what Pope Francis has denounced as a 'culture of cover-up'.

Pope Francis removed McCarrick from public ministry in June after an investigation found 'credible' evidence that he assaulted a teen in the 70s. The pair are pictured in 2015

McCarrick submitted his letter of resignation from the College of Cardinals on Friday evening, according to a statement from the Vatican.

'Pope Francis accepted his resignation from the cardinalate and has ordered his suspension from the exercise of any public ministry, together with the obligation to remain in a house yet to be indicated to him, for a life of prayer and penance until the accusations made against him are examined in a regular canonical trial,' the statement said.

McCarrick was ordained a priest in 1958 and quickly rose through the ranks in the Archdiocese of New York before being installed as archbishop of Washington in 2001, a post he held until 2006.

In the years since he retired McCarrick continued to be an international voice on human rights, held in high esteem by the Catholic community until sex abuse claims were made against him in June by Cardinal Timothy Dolan, the current archbishop of New York.

According to the Washington Post, the alleged victim - now in his 60s - said he was a student at Cathedral Preparatory and Seminary school in Queens, New York, in 1971 when he was picked to be the altar boy for a Christmas service at St. Patrick's Cathedral, where McCarrick was a monsignor.

Patrick Noaker, the victim's attorney, said McCarrick was measuring the then-16-year-old for a cassock when he 'unzipped his pants and put his hands in the boy's pants'. McCarrick allegedly told the teen not to tell anyone what happened.

A year later, McCarrick allegedly assaulted the teen again. Noaker said that McCarrick followed the boy into a restroom and 'assaulted him, tried to get his hands into his underwear. The boy had to push him away'.

The victim never told the church about what happened until recently when it created the Independent Reconciliation and Compensation Program, which reviews cases of alleged abuse by clergy and compensates victims.

McCarrick denied the allegations, saying that he has 'no recollection of this reported abuse'.

McCarrick is one of the most high-profile Catholic leaders to face abuse allegations. He is pictured with President George Bush in 2005 while serving as Archbishop of Washington

The priest's reputation took another blow this week when alleged victim James came forward in an interview with the New York Times.

McCarrick, a friend of James' family, allegedly entered the 11-year-old's bedroom when he was changing out of his bathing suit.

'He said: Turn around," and I really don't want to, because I don't want to show anybody anything,' James recalled.

James said that when he complied, 'Uncle Teddy' dropped his pants, too.

'See, we are the same,' the priest allegedly told him. 'It's okay, we are the same.'

In a following interview with AP, James said: 'I was the first guy he baptized. I was his little boy. I was his special kid.'

The incident marked the beginning of two decades of alleged abuse, according to James.

The now-60-year-old said he was relieved when the news about McCarrick being removed from public service was announced last month.

No charges are expected to be brought against the priest because the statute of limitations in both allegations has run out.