St Mary’s Episcopal Cathedral has been criticised because the verses contradict Christian teaching about Jesus.
The service was held on the feast of the Epiphany when western Christians mark the visit to the infant Jesus by wise men.
The cathedral provost said the reading was aimed at promoting understanding between the two faiths.
The chapter tells the story of the birth of Christ to the virgin Mary, and includes the Islamic teaching that Jesus is not the son of God and should not be worshipped, which has provoked criticism from some Anglicans.
Asked if he had known what the Koran verse specifically said about Jesus, Mr Holdsworth declined to comment further.
:doh2: This is a major problem with theologically liberal denominations. It does seem like for them the definition of tolerance is rejecting everything you believe and accept everything others believe.