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Gateshead Council did not approve a light projection onto the Angel of the North, which a supermarket said took place on Friday night.
Morrisons said the image of a baguette and the words "I'm cheaper" appeared on the artwork.
A spokesperson said it was not approached and did not give permission for the advert, and does not approve any lighting of the structure, even floodlights. A Gateshead Council spokesman said:
"The Angel has become a much-loved and iconic symbol of Gateshead and the wider North East.
"Many goods and services have and want to be profiled alongside it, and there is a filming process in place to work with organisations to do this, although this does not include lighting the Angel in any way.
"It is disappointing this process does not appear to have been followed."
A member of the public has been in touch with ITV News Tyne Tees to say he saw a supermarket advert, which was reportedly projected onto the Angel of the North in Gateshead on Friday evening, amid speculation that the image released by the supermarket could have been faked.
Ian Tate took the photograph below (on a time-lapse). The supermarket, Morrisons, has also insisted the projection did happen, and the images are genuine.
Gateshead Council has said the supermarket advert reportedly projected onto the Angel of the North was "impossible", because the light projection would be logistically very difficult and no one appears to have seen it.
However, the supermarket involved, Morrisons, said it did go ahead, on Friday evening, and the photo they have released, below, is a genuine image.
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A supermarket has had to apologise after an outcry over its decision to project a picture of a baguette and the words "I'm cheaper" onto the Angel of the North in Gateshead.
One of the most iconic landmarks of the North East, the Angel of the North, has been used as a supermarket advert. A picture of a baguette and the words "I'm Cheaper" were projected onto the wings of the 20-metre high public artwork in Gateshead on Friday evening.
Its creator, Anthony Gormley, is said to be disappointed that the work is being used as a canvas for adverts. At the time of its completion, in 1998, he said he hoped it would bring together the North East's industrial past with an information future, and be a "focus for our hopes and fears".
A spokesman for the supermarket, Morrison's, could not confirm whether the the firm had the permission of Gateshead Council to project the image. It said it had chosen the landmark as "synonymous with the North East".
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A supermarket chain has been criticised for apparently projecting an image of a giant baguette onto the wings of the Angel of the North.