Students learned to recite the classic Confucian works, as well as English literature, such as Shakespeare's plays and poems.

The works of Confucius make up only a small proportion of the materials studied in mainstream school classrooms.

A Shanghai municipal Education Department spokesman said Mengmu Hall was illegal because it was not registered with the authorities.

The school's 10,000-yuan annual tuition fees had not been vetted by pricing agencies, the Oriental Morning Post reported.

The spokesman also told the newspaper that it was illegal for parents to send their children to the school instead of 'normal schools'.

Parents' representative Zhou Yingzhi, who also manages the school's operations, confirmed the school had been ordered to close but said the parents would continue to promote Confucian teachings in other ways.

He also said the school would respond to the notice with the help of lawyers. 'We did not think of developing it into a regular school so we did not apply to the authorities,' Mr Zhou said.

'We parents are not satisfied with the current teaching in China's schools ... If children don't acquire this knowledge, a 1,000-year-old tradition will die in this generation.'

Mr Zhou said the government was being too inflexible in requiring all families to send their children to normal schools.

'Officials said the order was in line with the Compulsory Education Law ... Shanghai is such an economically developed and international city.

'Why not let parents choose the education form?'

Other private schools based on Confucian teachings have sprung up in Hunan , Hubei , Guangdong and Fujian .

The ancient sage's philosophy came under attack during the Cultural Revolution as the teachings were regarded as the mainstay of feudal society.