New South Wales Premier Bob Carr says he will not intervene in a dispute between Sydney City Council and the organisers of an Aboriginal tent embassy in a Sydney park.

Organisers were given permission by the council to set up the structure at Victoria Park in Chippendale to coincide with the parliamentary inquiry into the Redfern riots.

However Sydney Lord Mayor Clover Moore says she had an agreement with them to pack up the structure by the end of this week.

Organisers have denied any such deal existed and are refusing to go, despite the council providing them with free access to showers and toilets in the park's pool.

Mr Carr says the fate of the embassy is a matter for the council.

"There's some problems that local government has got to manage," he said.

"I'm not going to offer gratuitous advice about something that is 100 per cent a local government problem."