Sandra Davis - High Priestess at the Crystal Cauldron - had reserved Our Lady's Social Club in Shaw Heath, Stockport for her Pagan group's Annual Witches' Ball.
But when she rang to make payment arrangements she was told the event could not be held there and - despite already having printed tickets - another venue must be found.
The Diocese of Shrewsbury have since confirmed witches are not 'compatible with the Catholic ethos'.
Sandra, 61, said: "I'm appalled.
"My congregation is shocked that in this day and age there can be such religious discrimination.
"We're normal people who follow an earth-based religion and want to enjoy ourselves.
"We thought we were bridging the gap with other religions but misconceptions still exist, like we sacrifice animals.