A New York priest is being sued by his parishioners for allegedly pocketing US$1 million (A$1.3 million) from the collection plate to pay for rough sex sessions with a male prostitute.

Members of the congregations at St Frances de Chantal and St Francis Cabrini in the Bronx and Roosevelt Island also allege Rev Peter Miqueli spent A$83,000 in 2012 for illicit and prescription drugs, the New York Post reports.

Miqueli also bought a home in New Jersey and paid the rent for his gigolo's apartment with the money fleeced from the parish, the court papers allege.

"This lawsuit seeks to finally put an end to this truly sinful conduct so that St. Frances de Chantal parish can regain the strength, spirituality and faith it once had before Father Miqueli arrived," the court papers state.

The prostitute has been named as Keith Crist, who would be paid $1000-a-session for sadomasochistic sex with the Catholic priest.

Crist allegedly lived in the rectory of St Frances de Chantal with Miqueli before getting kicked out.

Maintenance workers allegedly saw piles of cash, each about 30cm high, scattered throughout Miqueli's rectory residence in 2014.

The lawsuit filed on Thursday also claims the Archdiocese of New York and Cardinal Timothy Dolan knew about the illegal scheme and did nothing to address it.