A sign erected at the bottom of Dorrator Road, Camelon, close to the club’s Sunnyside ground, and has no planning permission.
Nearby residents were unhappy when the signage suddenly appeared without any neighour notification.
However, the club has now vowed to work with planners to find a more suitable site.
Resident Bill Evans said: “As this is also the only access road for the crematorium and cemetery I find the erection of the advertising board at this position, which is not on the land of any of the advertisers or the rugby club, in poor taste. I feel that this board should be removed and placed on land belonging to at least one of the parties involved.”
Matt Dodd, club president, said: “I am sorry and a little surprised that it has caused such upset. There appears to have been a misunderstanding on our part following initial discussions with the local planners and we have suggested a follow-up meeting to agree upon a suitable location for the sign.
“All our players are taught about rugby’s core values of discipline, control and mutual respect, so we have no desire to alienate our neighbours and we look forward to arriving at a mutually acceptable solution.”
A Falkirk Council spokesperson said: “There is no consent in place to have a sign in this location.
“The rugby club has been asked to remove the unauthorised sign failing which formal action will be taken.”