The Post and Courier of Charleston reported that councilman Henry Darby said he would ask county council to withhold nearly $1 million in funding to the school unless it removes the flag.
Darby said the Confederate flag in the Summerall Chapel makes it appear that the school is trying to preserve the Confederacy.
The Citadel says the flag is a "Confederate Naval Jack" that hangs in the rear of the chapel as a memorial. The school says the flag is covered by the state's Heritage Act. The school says the Cadet Yacht Club presented the flag to Citadel President Charles P. Summerall in 1939.
A Citadel representative plans to attend the council meeting.