The Vatican said the Pope will name an envoy and appoint a commission to overhaul the Legionaries of Christ following disclosures that the conservative order's founder sexually abused seminarians and fathered at least one child.
In a statement, the Vatican denounced the Rev Marciel Maciel for creating a "system of power" built on silence and obedience that enabled him to lead a double life "devoid of scruples and authentic religious sentiment" and allowed him to abuse young boys for decades unchecked.
The Vatican assured the Legion's current members that it would help them "purify" what good remained in the order.
The Vatican issued the statement after Pope Benedict XVI met five bishops who investigated the Legion to determine its future.