The newspaper has since apologized for the error, acknowledging that the ad violates their guidelines and it "should never have been published."
It has since been taken down from the site, and an internal review is underway to determine how it happened in the first place.
See celebrities dressed as Santa:
Celebrities dressed as Santa
Newspaper apologizes for publishing obituary of Santa
1926: American actress Joan Crawford (1904 - 1977) dressed as Santa Claus about to pop down someone's chimney and deliver a sackful of presents. (Photo via John Kobal Foundation/Getty Images)
Jessica Simpson backstage at the Z100 Jingle Ball at Madison Square Garden in New York City on December 14, 2000. (Photo by Frank Micelotta/ImageDirect/Getty Images)
Kelly Osbourne during K-Rock's 2002 Claus-Fest Concert at Nassau Coliseum in Long Island, New York, United States. (Photo by Theo Wargo/WireImage)
LAKE BUENA VISTA, FL - DECEMBER 03: In this handout photo provided by Disney, Grammy Award-winning singer Mariah Carey performs while taping the 'Disney Parks Christmas Day Parade' TV special at the Magic Kingdom on December 3, 2010 in Lake Buena Vista, Florida. Carey sings two songs -- 'Oh Santa' and 'All I Want For Christmas is You' -- in the annual holiday telecast that airs Dec. 25, 2010 on ABC-TV. (Photo by Mark Ashman/Disney via Getty Images)
Promotional portrait of Cuban-born musician and actor Desi Arnaz (1917 - 1986), who waves as he pulls down the beard of his Santa Claus costume, 1950s. (Photo by Hulton Archive/Getty Images)
SUNRISE, FL - DECEMBER 11: Katy Perry performs during the Y100 Jingle Ball at BankAtlantic Center on December 11, 2010 in Sunrise, Florida. (Photo by Larry Marano/Getty Images)
TORONTO, ON - DECEMBER 14: Steve-O Appears On The Morning Show at The Morning Show Studios on December 14, 2012 in Toronto, Canada. (Photo by Sonia Recchia/WireImage)
NEW YORK - DECEMBER 07: Actress Jenny McCarthy attends the ABC Family's world record elf party to promote Santa Baby 2: Christmas Maybe at Bryant Park on December 7, 2009 in New York City. (Photo by Neilson Barnard/Getty Images)
THE TONIGHT SHOW WITH JAY LENO -- Pamela Anderson -- Air Date 12/19/2005 -- Episode 3063 -- Pictured: Actress Pamela Anderson onstage December16, 2005 (Photo by Paul Drinkwater/NBC/NBCU Photo Bank via Getty Images)
383397 09: Actor Arnold Schwarzenegger gives fans a thumbs up at the 20th Annual East Los Angeles Miracle on First Street/Food and Toy Drive and Give Away held at the Hollenbeck Youth Center December 16, 2000 in Los Angeles, CA. (Photo by Newsmakers)