The president of the Australian National Imams Council, Sheikh Shady Alsuleiman, is suing News Corp Australia for defamation.
The sheikh claims four articles published by News Corp papers in June 2016 implied he "preached hate towards others" including gay people, women and other minority groups.
"The sheikh has been left with no option but to commence civil proceedings against Nationwide News for damages arising from the publication of the articles," the council said in a statement on Friday.
"It is hoped that with such action, the culture of blameless, inaccurate and damaging reporting within Nationwide News and News Corp will begin to change."
Sheikh Shady launched his action in the Federal Court in Sydney on Wednesday.
His statement of claim says one of the articles, written for the Daily Telegraph by Tony Abbott's former chief of staff Peta Credlin, imputed that the sheikh held "repugnant views" about homosexuals, minorities and other women.
The sheikh also said two pieces published by Brisbane's Courier-Mail implied he advocated that AIDS was a divine punishment for homosexuality, that adulterers should be stoned to death, and that women should be hung by their breasts in hell if they dared look at men.
Another piece by the Telegraph imputed that he held similar views, Sheikh Shady claims.
News Corp has been contacted for comment.
Prime Minister Malcolm Turnbull last year took aim at the sheikh over his alleged comments regarding gay people and AIDS.
Following a public outcry, Mr Turnbull said he would not have invited the sheikh to a fast-breaking dinner in the month of Ramadan if he had known who he was dining with.
