Councillor Boyle, who represents the area, said the display did not represent the local community.
Said the former Mayor of Derry and Strabane: “The placing of these images and flags on the bonfire in Derry is disgraceful and I condemn it in the strongest possible terms.
“Those behind this bonfire do not speak for the people of the Bogside who want to live in peace with their neighbours.
“It’s extremely disappointing that we are seeing this just days after the sale of UVF and parachute regiment flags in our city.
“While I understand the hurt and pain that has caused people, reacting in kind serves nobody.
“People who wish to celebrate and commemorate elements of their culture and traditions should always aim to do so in a non-confrontational way without seeking to offend or upset anyone else.
“The past few days have shown that as a society we still have work to do in order to move forward as one.”
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