Coun Barry Dodson, 67, who denies the offence against a 13-year-old child, appeared at Sheffield Crown Court yesterday.
Dodson, who has resigned from the Labour party, is now an Independent councillor for the Rotherham East ward.
He took up his role last June but stood down three weeks after taking office when the claim was made.
He will go on trial in Sheffield in August when the case is expected to last four days.
At a short hearing yesterday, Dodson, of Cranworth Road, East Dene, Rotherham, entered a not guilty plea.
He was granted conditional bail.
He has been a councillor in Rotherham since 2000.