Leicester City Council said the tests were carried out as a result of the horsemeat scandal and now the frozen burgers have been withdrawn from schools in the East Midlands city.
"The community will be extremely shocked and distressed to learn of the contamination that has taken place," said a spokesperson from the Federation of Muslim Organisations (FMO).
"The FMO is working closely with the local authority and calling on them to take legal action in respect of this contamination and would urge the local authority to instigate criminal proceedings against the company involved under the Food Safety Act.
The test batch of frozen burgers were manufactured by Doncaster-based Paragon Quality Foods Limited in January and the company has not commented on the scandal so far.
"I am appalled by this situation. It is disgraceful that none of us can have confidence in the food we eat," assistant city mayor Vi Dempster, adding that letters had been sent to 6,000 families that could have been affected.
The Food Standards Agency and Doncaster Metropolitan Council have launched their own investigations and further tests will be taken of the remaining stock, Leicester city council said.
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