At a tribunal in London, the Reverend Teresa Davies, from Daventry, Northamptonshire, was found guilty of inappropriate conduct.
Davies reportedly told two church colleagues at a Christmas lunch in 2006 that she and her husband had spent holidays without their kids in the South of France, in an area that she said was noted for 'the casual exchange of sexual partners'.
The tribunal also heard that the couple had posted under the name 'Tess and Mick, Daventry' on swinging websites, reports Timesonline.
Later, Davies told her archdeacon that she had been drinking and was trying to be shocking.
She also said that she had never had any sexual relationship outside her marriage. She admitted to the tribunal that this was incorrect.
The tribunal said: "Clergy who commit sexual misconduct have to be dealt with firmly and in a way which would protect those who could be harmed if the respondent were otherwise allowed to remain in ministry."
Davies was suspended from her position as a team vicar in May last year and resigned in September. She did not attend the hearing.