City of York Council leader Cllr Claire Douglas issued a statement saying the city had seen "totally unacceptable racist attacks" and graffiti in the last month - which had coincided with the increase in flag flying.
Adding that "this cannot go on", she said the flags would now be taken down at an estimated cost of £250,000 to taxpayers - money that could have been spent repairing roads or providing care for older or disabled residents.
However, Flag Force UK, which helped organise the flag campaign, said any flags removed would be "replaced promptly" by its volunteers and that they "do not need permission from out-of-touch administrators".
Cllr Douglas said that the flags of St George and Union flags that have appeared around York were a symbol of patriotism for many people, and it was "right to have a deep pride in our home, our city and our country".
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