Aussie Night Markets will be offered a three-year licence agreement to continue operate night markets at Cook Park, Kyeemagh once a month on Sundays.
The company has been operating the monthly night markets at Kyeemagh on a trial basis since July, 2018.
Bayside Council made the decision after called for Expressions of Interest seeking to formalise the Kyeemagh arrangement and seek interest for an an outdoor market at Cahill Park, Wolli Creek.
Two operators made submissions: Aussie Night Markets to continue at Kyeemagh, and Organic Food Markets to operate at Cahill Park.
The council accepted the submission by Aussie Night Markets to operate a market on the first Sunday of each month in the Cook Park car park, Kyeemagh from 5.30pm to 9pm.
The market would have about 20 goods stalls and 25 food stalls and is expected to attract between 1500 to 2000 patrons.
Organic Food Markets submitted a proposal to operate a weekly market at Cahill Park, either Saturday or Sunday from 9am to 2pm and with around 68 stalls.
But the council found that the markets would not suitable for Cahill Park as there was not enough detail how they would deal with traffic or fit in with local sporting associations.
Organic Food Markets conduct various markets but primarily within schools or other facilities.
But the council report said that although Organic Markets were not suitable for Cahill Park, the council may have other locations that may be more suitable in the future.