Hull City Council said it had asked the club to remove the pitch after it was laid at the Airco Arena, on Walton Street, on Tuesday without permission.
Clubs using the venue were told last month to vacate the building so the Tigers could use it for their academy.
Hull City have been approached for a comment.
The authority said it had written a letter to the Premier League side's stadium management committee notifying them it had breached its lease agreement with the council.
Hull City previously said installing the new pitch would allow it to apply for a new academy status.
Council leader Stephen Brady said: "The club have changed the use of the arena with scant regard for the impact on hundreds of people who use the facility day-in, day-out and the community sports clubs who are proud to call it their home.
"It's on their behalf that we take this action today."
Thousands of people signed a petition opposing Hull City's plans to install the pitch.
A council has threatened to take legal action against the owners of Hull City after a synthetic pitch was laid in a sports arena by the club.