Prime Minister Scott Morrison has backed the right of religious schools to discriminate against gay students in a political row over a confidential government report into religious freedom.

Mr Morrison played down the storm over the report by pointing to existing law that allows religious schools to discriminate against some staff and students.

The Prime Minister stood by this power in the face of a fierce debate over whether church groups and religious schools should continue to hold exemptions from discrimination law on the grounds of personal conscience.

Opposition Leader Bill Shorten said there “should be no extension of discriminatory rights” in any response to the review, adding that the report should be released so voters could see the advice to the government.

Fairfax Media revealed the key findings of the religious freedom review, chaired by former Attorney-General Philip Ruddock, in an exclusive report on Wednesday.