Christian Democrat MP Fred Nile said the proposed changes to ethics classes were not tied to his support for NSW Premier Mike Baird’s power plan.
Speaking with ABC Radio, Mr Nile said he did not "do deals" with Mr Baird.
"I don't do deals and the Premier himself is the one who is initiating this clarification of the SRE and the enrolments."
Parents can currently enrol their children into ethics classes as an alternative to special religious education (SRE).
But Freedom of Information documents have revealed that the NSW government is considering removing any reference to ethics classes on public school enrolment forms.
Premier Baird's plan to lease the state's electricity poles and wires has today won the backing of NSW upper house MP Rev Fred Nile. But a spokesman for Mr Baird has denied that changes to school ethics classes were related Mr Nile’s support.
“There is no connection whatsoever between this issue and negotiations over the electricity bills".
Under proposed changes, enrolment forms will not mention ethics classes and parents will only be asked what religion their child practices.
The spokesman added that the availability of ethics classes can be communicated through school newsletters or websites. Parents could also be advised of ethic classes once their child has opted out of religious classes.
But the NSW Opposition and the Greens believe Mr Baird struck a deal with Mr Nile to garner support for the government’s power plan.
"In a move designed to carry favour with the Reverend Fred Nile, he's acting against the interest of parental and pupil choice when it comes to ethics classes," NSW Opposition Leader Luke Foley said.
"Pupils and parents should have a free choice whether to enrol in scripture classes or ethics classes."
Greens MP John Kaye added that the move was “tricking” parents into enrolling their children into religious classes.
"Christian democrat MP Fred Nile has for many years been obsessed with destroying the ethics alternative to scripture," Greens MP John Kaye said.
"The compromise that seems to have been struck is to hide ethics away from parents and simultaneously to trick them into enrolling their kids into special religious education."
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