One of the beaches has already been painted, but now the council is looking at reversing the work.
Town planners in Fuengirola came up with the idea because they felt it would be a tourist attraction and bring more colour to the town.
But horrified residents have dubbed the first phase of the face-lift "tacky" and "absurd" and many said they could not believe their eyes when they saw what had been done.
A team of ten council workmen recently took to the popular beach of San Fernando to paint the huge rocks along the coastline in various rainbow colours.
They insisted the spray paint was totally environmentally-friendly and would do no harm to either people or wildlife.
The idea was simply to create "something completely different".
A council spokesman said: "We just wanted to make it look like a giant mosaic."
The town mayor Ana Mula added: "We thought it looked quite striking!"
She then revealed they had intended to roll out the programme across all of Fuengirola's beaches and coastal areas.
Ms Mula said: "It's an artistic initiative. There are many people who come to walk, to sit on a rock to read a book or just to sunbathe.
"In short, it is an attractive area for our municipality and for all the residents of the city, as well as being one of our best-known points and a hallmark of Fuengirola. "
However, the council has now agreed to stop the painting and return the beach to its natural look following a public consultation and opposition from rival party groups.
Francisco Javier Toro, spokesman for opposition party Ciudadanos, said: "It's the most absurd thing I have heard of in a long time."
He also slammed the cost involved as the first phase took ten workmen two weeks to complete.
He said: "These rocks are part of the cultural and historical heritage of our municipality.
"Spending this public money could be much more beneficial for other areas and tasks that our municipality urgently needs."
Mayoral candidate Javier García León added: "Our tourism model should 'paint' more in terms of security, infrastructure and cleanliness."In the face of public comments, the council decided to conduct a citizen poll, which came out against the colourful scheme.
The council declined to say what the voting split was but confirmed it was dropping the idea and is now investigating the cost of reversing the work.
Sun Online Travel recently revealed how Costa del Sol is set to get a massive £515 million shopping resort.
As well as hotels, restaurants and parks, the resort will feature a music venue and even a circus.
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