The Northern Territory Government has backed down in a fight with the Top End cattle industry, abandoning plans to give Aboriginal native title holders more of say on proposed sub-leasing of cattle properties.

Key points: Cattle industry advocates said they were willing to fight against negotiation rights until next year's election

Cattle industry advocates said they were willing to fight against negotiation rights until next year's election A land council spokesperson accused the Government of backflipping on provisions that had been agreed on

A land council spokesperson accused the Government of backflipping on provisions that had been agreed on The Government said it shelved the amendments because the two sides could not agree

The Gunner Government will not proceed with amendments to the Pastoral Land Act, which would have required cattle stations to negotiate with native title holders before launching new non-pastoral projects on the land, such as extra cropping.

The Northern Territory's Aboriginal land councils had fought for greater involvement of native title holders in decisions about pastoral sub-leases, after initially being left out of consultations.

But the cattle industry said a negotiation right would stifle investment and had warned the Government it was prepared to fight the issue up until next year's election.

Ashley Manicaros says the industry is ready to discuss compensation. ( Supplied: NTCA )

The NT Cattleman's Association's chief executive officer, Ashley Manicaros, welcomed the Government's announcement that the proposed amendments would not go ahead.

"As an industry, we were very united in our opposition to it and I think we presented that united view," he said.

"We can now get on with the job of creating even more jobs in our $1.2 billion industry, free of any immediate excess red tape."

Decision 'bitterly disappointing'

But the decision was described as "bitterly disappointing" by Central Land Council policy director Josie Douglas, who accused the Government of walking away from provisions that had been agreed to.

"I just think it's really outrageous that this Government has allowed itself to be pushed around by a small and noisy group of leaseholders wanting to stage a land grab at the expense of native title holders," she said.

"If rights co-exist and the Government is giving pastoralists the right to sub-divide native title land, it must give native title holders the right to negotiate," she said.

Ms Douglas said it was wrong to suggest Aboriginal communities did not support economic development on native title land.

Cattle being mustered on Anthony Lagoon Station on the Barkly Tableland, Northern Territory. ( Supplied: Matt Gane )

The Government said, "Notwithstanding our view on the importance of the policy", it was shelving the proposed amendments after the land councils and NT Cattleman's Association failed to reach agreement at a recent meeting.

In a statement, the Government said it encouraged "the continuation of meetings" between the two sides.

But Northern Land Council chief executive Marion Scrymgour said the Government should stop making excuses for, "it's failure to follow through on its commitments to Aboriginal Territorians".

"The fact that we can't agree with the Cattlemen's Association about everything should not be used by the Government as an excuse to walk away from this critical issue," she said.

"The Government should stop blaming Aboriginal people, stop focusing on the next election and start doing what is right."