Cllr David Flear, Highland Council's Caithness area convener, has led moves to refuse the latest application saying it was not a Gaelic area.
But the chairman of the council's Gaelic select committee said the policy should apply throughout the Highlands.
Cllr Hamish Fraser said: "In that area there are many Gaelic names and, I am sure, there is Gaelic spoken there."
He said it was "disappointing" there was opposition to signs in Caithness including Gaelic.
He said: "But at Highland Council we have a policy and we are agreed to that policy and that applies throughout the region.
"Areas cannot be selective."
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