Operation Christmas Child, which is run by Samaritan's Purse, is requesting donors to pack shoeboxes with toys, notepads, and basic necessities such as soap- but not with items related to the Christian Christmas.
Stories from the Bible, images of Jesus and any other Christian literature are expressely forbidden in case Muslims are offended, reports The Daily Mail.
Last Christmas, Britons filled 1.13 million shoeboxes for Samaritan's Purse to send to children abroad.
But Barbara Hill, who works at the worldwide charity's UK headquarters in Buckhurst Hill, Essex, said: "Anything we find in the boxes which has a religious nature will be removed.
"If a box was opened by a Muslim child in a Muslim country they may be offended so we try to avoid religious images."
The charity has also banned war-related items such as Action Man-type figures, as well as chocolate and cake.
Yesterday the policy was condemned as "bizarre". John Midgley, cofounder of the Campaign Against Political Correctness, said: "It seems extraordinary that a Christian charity is so concerned about political correctness that it is banning itself from its own core values.
"We have members from all faiths who would be appalled at this patronising sort of attitude."
Mike Slade, the Rural Dean of Locking, Somerset, added: "Personally I think it is a great shame that we can't share the gift of Christmas which comes from the Christian faith with children all over the world.
"I think a number of Muslim people would respect Christians sharing their faith as they would accept respect from us. Political correctness is increasingly creeping into many spheres of life. We are very sad to hear about this."
A Church of England spokesman said: "We are very clear that in Britain, Muslims are not offended by Christians celebrating Christmas."
But he added: "In other parts of the world, in Muslim countries, if Muslims have strong values that would regard this as a hostile act, it is different.
"Ideally, a child would receive a present with a Madonna and Child card, but if that is not possible, it is more important that the aid gets through than the Christian message."
A spokesman for Samaritan's Purse, which was introduced to Britain by evangelist Billy Graham and is run internationally by his son Franklin, said: "Christianity motivates many of our supporters to help children in need. We are a Christian charity and that's about helping people.
"But it's our policy not to put religious, political or military items in boxes which go to areas of different cultures.
"All shoeboxes are checked in the UK warehouses in case someone has ignored the instruction and put such an item into a shoebox and, if found, any such item is removed."
Devoutly Christian MP Ann Widdecombe said: "Either this is being done in the name of Christ or it isn't. This is Christmas, a Christian festival. If it's being done for Christmas, there is no reason on earth why they should not have Christian symbols."
Last year, Lambeth Council in South London renamed its Christmas street decorations 'Winter Lights' to avoid offending non-Christians, while several years ago, Birmingham City Council notoriously re-branded the Christmas holidays 'Winterval'.
