Ms McKee, 29, died after she was struck by a bullet to the head as she observed rioting in the Creggan estate on Thursday night.
Bishop Donal McKeown said the “small” group of dissident republicans in Derry is a “danger to all of us”.
Two men – aged 18 and 19 – were arrested on Saturday under the Terrorism Act 2000 over Ms McKee’s cowardly murder.
Police have blamed dissident republicans for the murder, which happened after violence broke out as officers were carrying out searches for weapons and ammunition.
Intelligence had led them to suspect that there could be attacks on police over the Easter period.
A parade organised by dissidents for Easter Monday has now been cancelled as the city united against the ‘New IRA’ murderers.
Bishop McKeown told the BBC’s Sunday Sequence that people in the Creggan estate were “disgusted at what happened”.
“The one liberation they require in that community is liberation from Saoradh,” he said.
“We don’t want to be laboured with a reputation that comes from a small group that represents a small number of people but is actually a danger to all of us.”