Mining giant Rio Tinto and traditional Aboriginal owners are to sign an agreement to formally shelve the Jabiluka uranium mine.

Rio Tinto's subsidiary, Energy Resources of Australia, has confirmed negotiations are in the final stages.

The Gundhjehmi Aboriginal Corporation (GAC) says the agreement will ensure the clean-up of the site, which is surrounded by Kakadu National Park.

GAC spokesman Andy Ralph says it will also give the Mirrar people a veto over any future development of the site.

"This current generation does not want the Jabiluka mine to proceed," Mr Ralph said.

"There are sacred site issues and environmental issues surrounding the Jabiluka uranium mine and the senior traditional owner of the Mirrar people, Yvonne Margarula, has been saying no to the Jabiluka mine."