Police are reviewing the contents of a group chat run by students of an elite Sydney school after messages were passed on by the Daily Telegraph.
Knox Grammar School, based on the city's north shore, has told parents some students had been counselled, suspended or were "leaving the school" following an "incident involving several boys from the senior school".
In a letter to parents, headmaster Scott James said there had been a "range of consequences" for students based on "the extent of their participation" in the chat.
Mr James said the nature of the messages were "contrary to the culture and value of Knox" and "unacceptable".
"The boys posted inappropriate images and engaged in offensive commentary in a private online chatroom," the letter signed by Mr James stated.
"The actions of these boys do not reflect a Knox education or the expectations that we place on our students to be respectful and responsible citizens in the community."
Mr James said the school had also spoken "with the families of identifiable students".
"We take no pleasure in the action we have taken, but we believe we have found the right balance between upholding the values of this community and the need for consequences."
Mr James said the matter had been discussed with police and "the investigation is ongoing".
Knox is one of the city's most expensive private schools and charges annual fees of more than $30,000.
NSW Police confirmed the material was being reviewed by detectives from the Child Abuse and Sex Crimes Squad.
"Police will continue to review activity, make inquiries and will work with the school, parents and the eSafety Commissioner in relation to any matters that arise."
Daily Telegraph journalist Mark Morri wrote in an article that he made the decision to refer the material to police after speaking with experts.
Mr Morri said he did not make the decision "lightly" but had been disturbed by the contents of the chat.
In another article published by the newspaper, it was claimed the messages featured violent, racist, misogynistic and anti-Semitic commentary.
The NSW Jewish Board of Deputies CEO Darren Bark expressed his horror at allegations the messages included pro-Hitler sentiments.
"To glorify and praise an abhorrent figure responsible for the genocide of millions of innocent people is both grossly offensive and unacceptable," Mr Bark said in a statement.
"There is nothing remotely funny about their comments."
