The incident occurred last week when a caller who identified herself as of Arabic descent called in to Jacques Fabi's talk show on his 98.5 FM show "Fabi la nuit," The (Montreal) Gazette reported Tuesday.
Although the woman called the Holocaust "the most beautiful thing that could happen in history," Fabi didn't terminate the call.
He cautioned the woman to avoid making derogatory statements about Jews because of "consequences," and that he found the behavior of Montreal's significant Jewish community "annoying" sometimes, the Globe and Mail reported.
The corporate owner of the station, Cogeco Diffusion, announced Monday Fabi was suspended for a month without pay.
Fabi also issued an apology, saying his handling of the caller and his own remarks showed a "lack of judgment and respect for the Jewish people."
Rabbi Reuben Poupko of the Center for Israel and Jewish Affairs Quebec said he was satisfied with the suspension and hoped it would serve as a lesson for Fabi and other broadcasters, the reports said.