The Aboriginal protest camp in Victoria Park in Sydney is being packed up tonight.

The Sydney City mayor, Clover Moore says the council has reached a peaceful resolution with the camp's leaders.

The Aboriginal Tent Embassy was set up in the inner-city park near Sydney University to protest against the death of teenager Thomas J Hickey.

His death sparked the Redfern riot in February.

There were calls this week for the police to be brought in to close the camp but Sydney City mayor Clover Moore says she reached an agreement with embassy leader Isabelle Coe this afternoon.

She says the camp has now been packed up.

The Council will meet with representatives of the Aboriginal community on Monday to draw up a memorandum of understanding over the embassy.