Highland Council is considering taking legal action to block plans for houses close to Culloden Battlefield amid international outrage at the decision.
The local authority rejected an application from Inverness Properties to build 16 homes half a mile from the scene of the famous 1746 battle.
But Scottish Government planning reporter Richard Hickman overturned the decision and approved the scheme on appeal.
Council lawyers are now examining the feasibility of challenging Mr Hickman’s decision in the Court of Session after being contacted by Inverness South councillor Ken Gowans.
He said safeguarding the iconic battlefield was a cause close to his heart, and that he was furious Historic Scotland did not object to the housing plans.
He believes that if the organisation had objected, its stance may have persuaded Mr Hickman to uphold the council’s decision.
The councillor said: “The next stage is that we could take it to the Court of Session. I’ve asked the council’s legal team to investigate the feasibility of us being successful in appealing the decision.”
The development plans have been criticised not only at a local level, but also internationally.
A petition set up to halt the housing project attracted hundreds of angry comments within hours from as far afield as North America and Australia.
Expat Scots accused the Scottish Government of betraying the memory of 2,000 soldiers who died during the battle in which Bonnie Prince Charlie and his Jacobite army were routed by government forces.
David Tolmie, a self-confessed “history buff” from Edinburgh, set up an online petition yesterday and it attracted more than 500 signatures within 11 hours, many from overseas.
Linda Stubblefield, from Kingsport, Tennessee, said: “Culloden Battlefield is sacred ground for all Scots, no matter how far removed from the shores of Scotland.”
Amy Walts, from Rochester, New York, wrote: “Culloden is sacred ground where countless people lost their lives. It is still thick with emotion and historical significance, and a place of pilgrimage for many. Any development of that land is shameful and reprehensible. The international community sees this proposal and strongly disapproves.”
Kathleen Findlay, from Canada, said that “if we stop honouring the dead” then “we betray them”.
Petitions from Germany, Finland, Greece and the Netherlands also voiced their concerns, with one saying it was “beyond disrespectful”.
Mr Tolmie, 48, said: “This sure as hell must not happen.
“It seems that Holyrood are presently responsible for this planning application being given the go-ahead, after Highland Council rejected the application. Although this may still have a further hurdle to cross, it is important that whoever makes the final decision knows the strength of feeling and utter disgust at even the possibility of this happening.”
A spokesman for Inverness Properties said the housing was replacing unsightly farm buildings, would “enhance” the surroundings of the battlefield and was in line with planning guidance.
A Highland Council spokeswoman said: “Mr Gowans asked our legal team to consider if there is a basis for a challenge.
“Our initial view is there are no immediately obvious grounds for a challenge, but we are going to take time to review this.”