The Department of Education has issued a statement over the Olive Tree Primary School in Luton.
All schools - including Olive Tree Primary - must promote tolerance and harmony between different cultures.
We asked Ofsted to carry out an inspection at Olive Tree and they found they are not meeting this requirement. We now require the school to produce an action plan to address these issues and ensure it meets the independent school standards.
We will monitor progress closely and, as we have repeatedly demonstrated in all types of school, will not hesitate to take tough action if required."
The Chair of Governors of the Luton Primary school said the school rejected the findings of the report.
Farasat Latif, said today:
"We reject the findings of the report. Ofsted came into the school looking for problems of extremism and intolerance and didn't find any. They carried out a half-baked inspection, which they abandoned half-way through.
"We are the victims of the extreme politics of Michael Gove whose ignorance of Islam is matched by his hostility. Many Muslims will feel alienated and victims of state Islamaphobia.
"We are a small school with 65 children and got 100% on our SATS last year. We are involved with charities, like Dr Barnados which is not a Muslim charity."
He said the school was considering taking legal action against the report. They were waiting to hear if it is to be put into special measures.
Mr Latif said: 'We have a large number of books about different faiths, which inspectors failed to to notice, including The Diary of Ann Frank.'
An Ofsted report has judged a Luton Primary school as inadequate as it fails to promote different cultures and faiths.
Ofsted said leaders at the Olive Tree Primary School have failed to ensure that the school’s educational resources present balanced views of the world.
It follows news that three schools investigated in the wake of allegations of a "Trojan Horse" takeover plot by hard-line Muslims in Birmingham have been declared failing and placed in special measures . Ofsted will publish 21 reports on schools later today.