The Shaolin Temple on Thursday said the rumor concerning its abbot's rampant sex life was utterly false and posted a reward for information about the rumormonger's identity.
On a statement posted on its website, the temple denounced the rumor as "malicious libel woven out of nothing."
The rumor accused Shi Yongxin, the 30th abbot of the Buddhist monastery located in central Henan Province, of having a mistress at Peking University and engaging in sexual relations with female celebrities.
"Considering the great damage the rumor has caused to the abbot and the temple, we've reported it to the police and are requesting an investigation to reveal the truth to the public," the statement said.
The temple has also offered 50,000 yuan for any information that leads to finding the rumormonger.
Shi has endured a barrage of attacks after he initiated a highly commercialized operation of the temple, including putting up Kung Fu shows and selling products under its name.
In May, rumors swirled on the Internet that Shi was arrested for soliciting prostitutes in Henan. Religious authorities later dismissed the allegation as false.
Qian Daliang, general manager of a company running Shaolin's intangible assets, said the temple could have ignored the rumor despite its harmful effect.
"But we believed it obligated us to clear the charge after the rumor wrongly implicated innocent celebrities," Qian said.