More than 200 cattle stranded at a remote station in the northern Yilgarn may have to be shot if a last-ditch effort to muster them out is unsuccessful.

The Department of Lands said the animals remained on Diemals Station, where available water supplies were rapidly diminishing.

The former pastoral station, around 170 kilometres west of Menzies, has been at the centre of a long-running dispute between the Department and former leaseholder, Tony McPherson.

While Mr McPherson forfeited the lease in October 2011, he was granted the right to continue living at the homestead, as long as he removed all cattle by December 2011.

However, a Department of Lands spokesman said Mr McPherson had failed to meet the deadline.

"The Department is aware approximately 200 cattle remain on the former pastoral station, attracted by the availability of water at the homestead and at other points on the property," the spokesman said.

"The Department is also aware some of these water sources will cease in the near future, likely resulting in the culling of the remaining cattle over the summer months.

"To assist in this extraordinary circumstance, the Department of Lands is currently working with the Department of Parks and Wildlife and the Department of Agriculture and Food to close down remaining water supplies."

The ABC understands that if an effort to muster the remaining cattle out fails, a licensed shooter will be sent in to destroy the remaining animals.

More than 500 cattle already removed

The lease to the station, which had been held since the late 1970s, was officially forfeited on October 3, 2011, due to Mr McPherson breaching the lease conditions.

The breaches included the non-payment of rates and poor management of the land and livestock.

After Mr McPherson failed to meet the initial 2011 deadline, the Department of Lands launched a series of musters in an effort to reduce stock numbers.

Diemals Station sits south of Lake Barlee, around 170km west of Menzies and north of Southern Cross. ( Supplied: Google Maps )

"Mr McPherson was given subsequent and multiple extensions to remove the livestock, however failed to do so," the spokesman said.

"Therefore, over the past two years, the Department of Lands has instigated several musters to remove the remaining livestock, resulting in approximately 500 head of cattle being removed."

While the mustering efforts have successfully reduced stock numbers, the station's remote nature has made efforts to remove the cattle difficult.

Officers from the Departments of Lands, Parks and Wildlife and Agriculture are expected to continue monitoring the situation on the station in coming weeks.