NSW police officers will be allowed to march in this year's Mardi Gras parade after reaching an agreement with organisers.
On Monday, the Sydney Gay and Lesbian Mardi Gras board , due to the additional distress it could cause the LGBTIQ+ community following by a serving officer.
But on Wednesday afternoon, it was announced police would be allowed to take part as long as they weren't wearing their uniforms.
The decision came out of a discussion between the Mardi Gras board, NSW Police Minister Yasmin Catley and NSW police commissioner Karen Webb.
"I am delighted that our LGBTQIA+ officers, as well as our other police who are allies and supporters, will be allowed to march this year as they have done for the past 20 years," Webb said in a statement.
"The Sydney Gay and Lesbian Mardi Gras is an important event on the NSW Police calendar and as commissioner, I am committed to continuing to strengthen the relationship between my organisation and the LGBTQIA-plus community."
The parade runs through Oxford Street in Darlinghurst in the city's inner east on Saturday.
On Wednesday, Labor government minister Penny Sharpe backed police marching, recalling her experiences volunteering at Mardi Gras more than three decades ago.
"I remember the time when the police didn't march, didn't want to march and when they stepped up and said 'we want to be part of this'," she told ABC Radio.
"We never get a better outcome by excluding the people who are in the best place to change institutions."
Australian Federal Police officers have decided not to march, abandoning plans to join their NSW counterparts.
"This decision was not taken lightly, but we acknowledge how some in the community are feeling about the blue uniform," an AFP spokesperson said in a statement.
Prime Minister Anthony Albanese and NSW Premier Chris Minns have both backed police marching in the parade, as has independent state MP Alex Greenwich, whose electorate includes the Oxford St precinct where the event will take place.
Both leaders are expected to join the parade on Saturday.
Mardi Gras organisers said the agreement came from a "constructive discussion regarding the board's concerns about police participation at this year's parade, as well as a range of broader issues currently impacting LGBTQIA+ communities".
Organisers said the discussion also explored the police's commitment to and implementation of an "external strategic LGBTQIA+ advisory panel" to work with NSW police, following the recommendations of a recent landmark inquiry into potential gay hate crimes.