A deal has been sorted between Clover Moore and the homeless people living at the tent city in Sydney's CBD, with a 24-hour drop-in space to be provided.
The camp area containing more than 40 tents in Martin Place will be dismantled tomorrow morning.
This follows tension between the state government and Sydney council over the management of the issue.
"There has been an agreement that the tents will be packed up just as soon as our council trucks can go down and help them with that material and store it," Ms Moore said.
"Accommodation has been offered to people and they realise that pressure has been mounting."