You are not permitted to download, save or email this image. Visit image gallery to purchase the image.
The Rev. Gerold Langsch, of Austin, Texas, was arrested on Thursday and charged with assault by contact, stemming from the incident on October 5 last year.
The 75-year-old priest is free on $US15,000 ($NZ21,000) bond. If convicted, he could be sentenced to a year in jail and fined up to $US4000.
Police say in the arrest affidavit that the woman was in hospice care for complications from diabetes when Lansch went to her home to administer the sacrament of anointing the sick, a sacrament of absolution.
The woman, who is still alive, reported that Langsch first anointed her chest with holy water, then began to apply lotion, massaging a breast, pinching a nipple and asking "Does that feel good?"
He then tried to slip his hand inside her diaper, but was unable to.
The woman later told police the priest's actions left her in shock, uncomfortable, confused and feeling like, she told police, a "nasty, dirty piece of meat."
In a statement on Wednesday, the Catholic Diocese of Austin said Langsch had been pastor of St Paul Catholic Church in Austin until last month, when the diocese "received an unrelated report that he had failed to maintain proper boundaries with an adult."
The statement said that report did not involve any physical contact. Nevertheless, the diocese removed Langsch from his post and deemed him no longer able to serve as a priest in the diocese.
The diocese said it would cooperate fully with police and asked anyone with information about the priest's actions to notify police.