Shortly after reinstating its Twitter account, Jewish Voice apologised to Mr Gregory and Sheffield Wednesday fans, announcing it was closing.
Jewish Voice said: "We just want to send our total apology to Paul Gregory and Sheff Weds fans who we offended by tweeting this image we saw on a Facebook group.
"Although we didn't make the image and it appears it was made in 2016, nevertheless we should not have posted it. It was wrong and offensive.
"We did not know the man in the picture was Paul Gregory and just posted it without doing any research hence this was a serious failure and as a result we are closing the Jewish voice page.
"The admins are planning to continue to work in politics and on a similar Left-Wing jewish project but it will be different and more professional."
Mr Gregory, a familiar face at the club's Hillsborough ground, told Sheffield newspaper the Star he was “gutted”. He also distanced himself from far-right politics.
Mr Gregory added that he had taken legal advice from prominent Jewish lawyer Mark Lewis, who received media attention this week after he halted Sunday's Al Quds march in London by refusing to move his wheelchair.
Mr Gregory said: “All I want to do is show the good side of football and make people laugh.
“I just think it's ridiculous that somebody can do something like that with nobody's knowledge. I haven't got a clue how they have done it or where they have got the photo from that they used.”
Mr Lewis told the JC he was asked to assist by Mr Gregory's fellow Sheffield Wednesday fans, some of whom he had represented in previous libel cases.
He said: "[Mr Gregory] is a lovely man - he is not harmful at all. He is very helpful and at football matches he is also known to help push other fans' wheelchairs for them.
"This image suggests that he supports the EDL and is a fascist... which is far from the truth.
"This is absolutely typical of someone having a go at the white working class, as well as fat-shaming."
Known locally as “Tango”, Mr Gregory is a regular at Sheffield Wednesday matches, attending each home and away match, despite living in Wolverhampton.
Dutch Owls, a Sheffield Wednesday fans’ Twitter account, said: “Shame on you [Jewish Voice] for using this slanderous, photoshopped image of tango to promote your campaign.
“Paul Gregory is a true loyal wednesdayite and a lovely man whom is anything but a nazi. Hope you guys get the punishment you deserve.”
Jewish Voice had 16,000 followers on Twitter and describes itself as a "Jewish media group campaigning against antisemitism, far-right extremism and yearning for an end to the Israel/Palestine conflict".
