The future of the Wave – a giant metal sculpture, which was intended to stretch 275ft around Castle Headland with 21 curved metal fins – will be discussed at a meeting of Scarborough Council's Cabinet next week.

Council officers are now urging the project, which has a shortfall of around £165,000, be scrapped and alternative projects explored.

A public arts group chose the sculpture in 2004 but it has been dogged by problems including spiralling costs and divided public opinion.

And opponents feel the existing funding would be better spent on a more appropriate artwork such as a memorial to disasters at sea.

Cllr Peter Popple said the decision had always been on the cards and raising almost £250,000 had proved impractical. He said: "I thought it was bound to happen. Eighty per cent of people in Scarborough must have been against it.

"We need a more appropriate artwork, something that commemorates the fishing industry or the fishermen who have drowned at sea. I think this is an excellent move."

Scarborough's Mayor, Cllr Janet Jefferson, who represents the Castle ward, said the proposal to scrap it represented the feelings of people in her ward and agreed a more appropriate artwork should be chosen – such as a memorial to the 1954 RNLI disaster."

When the project was originally proposed the estimated cost was £96,000 but costs rocketed to an estimated £242,000. The council set a deadline to source private sector funding by the end of March but it proved unsuccessful.

The Wave was intended to be installed in December 2004 when the Marine Drive coastal defence works were completed. But delays in the project and problems raising some of the private sponsorship needed meant a contract with designers Eaton Waygood Associates was not signed until July 2005, effectively pushing up the costs.

The scheme was criticised as "an insult" by Norma Barratt who lost her daughter and two grandchildren after they were swept out to sea from a slipway in the North Bay in March 2005.