Residents of King City, North Carolina are crying foul over the removal of the kneeling soldier and the Christian flag in the local Veterans' Memorial.

According to WXII-TV, the city's council had opted last week to have the soldier statue and the Christian flag removed as part of the settlement of a suit that Steven Hewett, an Afghanistan war veteran, had filed against the city.

In response, WFMY News 2 reported that King City residents who want to keep the religious symbols flocked to the Veterans' Memorial on Sunday, January 11, to show their support.

In 2012, Steven Hewett filed a case against the city alleging that the city had violated his rights under the US Constitution by flying the Christian flag in the Veterans' Memorial and by instituting the flag policy.

The flag policy is a system instituted by the King City Council in 2010 that allowed people to fly a flag of their choice in the memorial in honour of their fallen. These people were chosen by routine lottery.

The city immediately contested the case and denied any violation. However, according to WXII-TV, the Council decided on a settlement last week to avoid incurring legal costs that it states the city could not afford if the case was allowed to carry on.

City Manager Homer Dearmin said it was "very difficult" for the City Council to make this decision, and that they were presented with no choice.

"It was not reached until it became clear that the costs of proceeding to trial would greatly exceed the city's insurance policy limits. The City's litigation costs and fees were estimated to approach $2 million, without any assurance of a successful outcome," he told WXII-TV.

Dearmin also revealed to WXII-TV that the city's insurance provider demanded a settlement of the case, or they will deny coverage.