Sydney's inner-city Aboriginal community will sit down with members of the Sydney City Council tomorrow to draw up a memorandum of understanding aimed at resolving long-standing issues about land ownership and race relations.

Sydney Lord Mayor Clover Moore committed to finalising the memorandum to end a tent embassy protest in Victoria Park on the city fringe.

In a letter recognising the tent embassy, Councillor Moore said she acknowledged that the Indigenous people of inner Sydney resisted the permanent occupation of their lands and that the resultant conflict has never been resolved.

Councillor Moore says Sydney 's Indigenous people need to know the Council will listen to their concerns.

"It's very important at this time, given the Upper House inquiry into the Redfern riot, given TJ's death, that the Aboriginal community in the city knows that the city's working with them, wants to support them and empower them and find every opportunity to help them."

"So that approach has been cemented now."