Robert M. Carter said he'll fight his dismissal, which came last week after aldermen met in a closed-door session.
Carter said officials are upset he filed a federal lawsuit seeking class action status alleging Toyota didn't adequately respond to accelerator malfunctions, according to the Northeast Mississippi Daily Journal.
Toyota has recalled millions of vehicles due to the problem.
Carter says he did nothing wrong because the filing was part of his private practice.
Toyota built a plant in Mississippi but says no cars will be produced there until the economy improves.