ESK valley councillors are considering submitting an altered design for a beacon above Danby.
If the North York Moors National Park Authority refuses planning permission again, they may launch an appeal.
Danby Group Parish Council discussed planning tactics at its meeting on Wednesday night.
Councillors said many residents wanted a beacon and felt strongly the park authority's recent planning refusal was unfair.
The authority said the beacon would spoil the moorland panorama and called for something smaller, such as a stone marker.
Chairman Coun Herbert Tindall, of Danby, who is also national park vice-chairman, was annoyed at the rejection.
He told the parish council: "Everybody who has rung me or spoken to me says the original design should be kept and we should go for an appeal."
Coun Geoff Banner, of Commondale, said: "It was a good design and the reasons given for rejection were appalling."
Coun John Randles, of Westerdale, said: "Beacons were used for communicating during the Armada. They were quicker than telephone lines. We should put a plaque explaining this on the Danby Beacon."
But Coun Banner replied: "One step at a time - we haven't got the beacon yet."
He thought people would donate money towards an appeal and Coun Graeme Thompson of Castleton added: "We would have one hell of a fighting fund."
Coun Tindall thought a less-expensive appeal procedure known as a calling-in would be a waste of time. If a formal appeal was launched, the council would receive expert advice.
Coun Les Underwood, of Danby, suspected the park authority would reconsider its position, since last month's controversy. It should have a common sense approach, he said. The beacon was barely higher than national park signs.
But Coun Tindall said the same design could not be resubmitted. It had to be altered and he had asked the designers to draw up three options. The basket could be detachable or the vertical pole shortened, for example.
Clerk Pam Reeves said North Yorkshire County Council, English Nature and English Heritage had no objections to the original design. However, the North York Moors Association had.
Coun Thompson questioned its role, saying: "The association is not an elected body. It's a one-man show."
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