Demonstrators have agreed to alter their route for a planned protest of Cardinal George Pell's funeral after a Supreme Court bid to block it was withdrawn.
LGBTI group Community Action for Rainbow Rights planned to protest directly outside St Mary's Cathedral in Sydney to coincide with Thursday's funeral mass.
However, NSW Police Commissioner Karen Webb filed an urgent application to block the protest.
Ms Webb's barrister Sebastian De Brennan told the Supreme Court on Wednesday the commissioner did not seek to stop the protest going ahead.
"It is simply that the proposed route, on our case, causes problems in terms of public safety," he said.
Tahn O'Rourke, acting for the organisers, said there was scope for further discussions to address concerns about protesters on College Street, which runs between St Mary's and the eastern side of Hyde Park.
The parties were given time to discuss and agreed protesters would be allowed to walk up to College Street, but not down it, Mr De Brennan said.
He said the court would not be asked to make any order as the parties had come to an agreement.
"The matter has been resolved," he said.
Mr De Brennan also sought leave to file a notice to discontinue the application electronically which was consented to.
Justice Robert Beech-Jones praised the parties for their handling of the application.
"I would like to thank the parties and the lawyers for resolving something that arouses no doubt great passions," he said before leaving the bench on Wednesday afternoon.
Outside court, NSW Police Acting Assistant Commissioner Martin Fileman told reporters the court outcome was "reasonable" and having College Street as a buffer between Hyde Park and St Mary's would mitigate police concerns.
"We ask the people attending, on both sides ... that they're respectful of each other and that they comply with police directions," Mr Fileman said.
Community Action for Rainbow Rights organiser Kim Stern told reporters that protesters held their ground and achieved a real victory.
"We're now able to march up, right opposite the church and have our voices heard, have a loud, visible, angry rally ... and have our opposition heard tomorrow by the political right and the conservative establishment in attendance."
Cardinal Pell died in January and was given a traditional funeral at St Peter's Basilica in the Vatican.
His body is lying in state at St Mary's Cathedral on Wednesday before a requiem mass and the associated protest on Thursday.
Clerical abuse survivors and their supporters have attached ribbons to the cathedral's fence, before some were cut off by security guards.
