The parents withdrew their nine-year-old daughter from the St Cyprian's Greek Orthodox primary school in south London when she was banned from wearing the hijab, the Daily Mail reported.
The parents said it would be a sin for their daughter's head to be uncovered while in the presence of male teachers as she has "reached puberty".
The school now faces a high court case amid claims that the uniform policy was a violation of the child's religious freedom.
School officials said the parents were informed about their uniform policy when their daughter was first admitted at seven years. The girl's brother is still a pupil at the institute.
Government guidance on school uniforms states that schools should "act reasonably" in accommodating religious beliefs when it comes to hair, clothes and jewellery, but heads have the final word on restricting religious dress, the daily said.
A court hearing is due to take place next month.
London: A Muslim couple have sued a school in Britain after it banned students from wearing the traditional Islamic headscarf or hijab, a media report said Thursday.
First Published: Thursday, January 03, 2013, 17:06