Pope Francis has rejected a million-euro donation from the defence industry, the Italian newspaper La Repubblica reported in Friday's edition.
The Vatican declined a donation of €1.5 million ($1.6 million) from the Italian defence company Leonardo, the newspaper said.
It was only in his Christmas address that the head of more than 1.4 billion Catholics had castigated the defence industry as a war profiteer.
According to the company, the donation was intended for the Vatican's Bambino Gesù paediatric hospital to purchase new medical equipment. The money has now gone to a paediatric clinic in Genoa.
With more than 50,000 employees and an annual turnover of around €15 billion, Leonardo is one of the world's largest defence companies. The Italian state holds a 30% stake in the firm.
In his Christmas address, Francis accused the industry of profiting from wars and conflicts.
He spoke of "machinations of evil that oppose the divine light, in the shadow of hypocrisy and secrecy." The interests and profits of the "masterminds of wars" must be made public, he said.
According to La Repubblica, the donation was to be made at Christmas.
The newspaper reported that the "no" from the Vatican came as "no small surprise" to the company's top management.