The Greens will preference Labor ahead of the Our Newcastle Independents in the upcoming Newcastle council election.
The party will run an open ticket for lord mayor with just a number one for the Greens on its how-to-vote information.
But, in the wards, the Greens will urge voters to put Labor second and Ross Kerridge's Our Newcastle Independents third with the exception of ward one, where the party has preferenced the Socialist Alliance above the other groups.
The Socialist Alliance is only running in ward one and for lord mayor.
It is understood Labor will recommend voters direct their preferences to the Greens.
The Greens had weighed up a preference deal with the Our Newcastle Independents, some of whom are former Labor party members but are staunchly opposed to the current regime.
Greens lord mayoral candidate councillor Charlotte McCabe has been vocal in her objection to some Labor policies, including the federal government's recent missile factory announcement for Williamtown.
Cr McCabe said her party's preference committee had spent a long time reviewing policies of the teams.
"Labor was the party they felt most closely aligned with Greens priorities," she said. "And I stand by that decision.
"But obviously it's a suggestion. It's up to people how they preference."
Preferences are optional in local government elections, but they could be a factor in Labor retaining its majority. Number crunchers are anticipating a tight contest in ward three, where Labor has two councillors.
Pre-poll voting for the local government election opens on September 7.