"If someone is gay and he searches for the Lord and has good will, who am I to judge?" Francis asked.
His predecessor, Pope Benedict XVI, signed a document in 2005 that said men with deep-rooted homosexual tendencies should not be priests.
Francis was much more conciliatory, saying gay clergymen should be forgiven and their sins forgotten.
Francis' remarks came today during a plane journey back to the Vatican from his first foreign trip in Brazil.
Francis said he investigated and found nothing to back up the allegations.
Francis was asked about Italian media reports suggesting that a group within the church tried to blackmail fellow church officials with evidence of their homosexual activities.
Italian media reported this year that the allegations contributed to Benedict's decision to resign.
Francis was responding to reports that a trusted aide was involved in an alleged gay tryst a decade ago.
He said he investigated the allegations according to canon law and found nothing to back them up. But he took journalists to task for reporting on the matter, saying the allegations concerned matters of sin, not crimes like sexually abusing children.
And when someone sins and confesses, he said, God not only forgives but forgets. "We don't have the right to not forget," he said.
Speaking in Italian with occasional lapses in his native Spanish, Francis dropped a few nuggets of other news: He said he was thinking of travelling to the Holy Land next year and is considering invitations from Sri Lanka and the Philippines as well.
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