The former Labour leader said he had spoken with his solicitor about the tweet sent from Coun Paul Nickerson’s account on Monday evening (November 15).
Mr Corbyn said: “My solicitor has been notified and we are taking legal action.”
Coun Nickerson, who was suspended from the ruling East Riding Conservative group pending an investigation while currently remaining a Minster and Woodmansey ward member, declined to comment.
It comes as the councillor wrote to the Islington North MP apologising for the tweet which he claimed was sent after his account was compromised.
It featured a doctored photo of Mr Corbyn standing next to the taxi blown up outside Liverpool Women’s Hospital holding a Remembrance Sunday wreath, captioned: “Unsurprisingly”.
Coun Nickerson wrote in his email to Mr Corbyn that he took full responsibility for the tweet and distress caused and maintained others sent it.
He added he was also aware that the tweet had caused particular offence in Liverpool, both due to the attack and local respect for the former Labour leader.
Coun Nickerson deleted the tweet and has taken his Twitter account down after it provoked a backlash from figures including Labour Hull West and Hessle MP Emma Hardy, among others.
He did not attend the full meeting of East Riding Council on Wednesday (November 17).
Beverley and Holderness Labour Chair Steve Gallant said the tweet was appalling and East Riding Liberal Democrat Deputy Leader Coun Denis Healy called on Coun Nickerson to resign.
Coun Jonathan Owen, Conservative and East Riding Council leader, said offensive messages from members no matter the intention would not be tolerated following Coun Nickerson’s suspension from the group.
He added an investigation was now underway and that locals expected councillors to behave appropriately at all times.
Coun Owen said: “All people in public life, irrespective of politics, should be united in condemning the terrorist attack that took place outside the Liverpool Women’s Hospital on Remembrance Sunday.
“It is not the time for inappropriate remarks, however intended, and they will not be tolerated in this Conservative Group.”
Coun Nickerson said yesterday he felt his suspension was reasonable while a probe is conducted and pledged to co-operate fully.
He added he had since received death threats.
The councillor wrote in his email to Mr Corbyn: “I recognise that as a politician you will be open to many lines of criticism but I feel this fell below the high standards others and especially you personally have demonstrated in your own communications.
“You have worked tirelessly not just for your own constituency but for many in Liverpool and as an advocate of the people of Liverpool they have rightly been upset and offended by this.”