The state government has agreed to consider other sites for a multi-storey commuter car park at Jannali.
This follows a barrage of criticism over the compulsory acquisition of nine homes for the proposed facility on the western side of the train station.
The breakthrough came at a meeting in Parliament House yesterday afternoon between Transport Minister Andrew Constance and Sutherland Shire mayor Steve Simpson.
Also present were the council's chief executive, planning director and property manager and Miranda MP Eleni Petinos.
"The minister was very consultative, and I thought genuine and empathetic to the situation of the residents," Cr Simpson said.
"He agreed transport staff should come out and meet with our staff next week and look at other sites.
"At this stage, I am hoping for a positive outcome, but we will need to wait for the sites to be evaluated.
"We put forward a number of sites. I am not at liberty to to say where they are."
Earlier this week, Mr Constance blamed the council for the choice of the car park site.
Community group, Save Our Homes Jannali 2226, cautiously welcomed the move, but will continue their campaign.
"We will not rest until the compulsory acquisition process is removed, in entirety, from the homes in our community," spokesman Tom Richards said.
"We welcome the dialogue between the state government and council and the willingness to come to an acceptable conclusion, but the clock is still ticking and the homes remain under clear threat".
Comment has been sought from Transport Minister Andrew Constance.
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