The Waterside Councillor said: “The erection of this banner in support of ‘Soldier F’ is a clear attempt to stir up community divisions as it is placed right beside Curryneirin, a predominantly nationalist housing estate.
“I have been contacted by a number of residents, from all backgrounds, who are intimidated in their homes as this banner was put up dozens of people including reports of masked men.
“This banner is both provocative and offensive and is designed to cause hurt to the Bloody Sunday families.
“Those in positions of leadership within unionism need to come out clearly and state their opposition to this banner and other similar ones right across the north and call for their removal.
“Sinn Féin have passed motions on a number of Councils – including Derry and Strabane – calling for legal action to force statutory bodies to remove these offensive flags and banners from their property.
“I will also be reporting this banner to the PSNI.
“It should be removed immediately,” he added.
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