The council's chairman Aron Veständig tells Radio Sweden that he's not opposed to police allowing the rally but rather its date and location in downtown Gothenburg.
"We're definitely not against the march itself," he says. "The problem is that when this passes so close to the synagogue, it causes a lot of worry among the members of the community and it also creates a security risk."
Police in Gothenburg will allow the Nordic Resistance Movement to hold a rally on September 30, the same day as Yom Kippur, outside the Göteborg Book Fair, saying that even though many may feel threatened or provoked by the group, their march cannot be banned just because they are Nazis.
Police are also expecting several counter demonstrations.
The group will march from the book fair to Gustav Adolf square, roughly half a kilometer from the synagogue. Veständig says many people will be attending services at the synagogue on Yom Kippur, the Jewish day of atonement.