All three proposals to determine if NSW Police would be allowed to march were voted down. (AAP: Tracey Nearmy)
In short:
The Sydney Gay and Lesbian Mardi Gras annual general meeting has voted down a bid to ban NSW Police from marching at next year's parade.
It means that, like other participants, NSW Police will have to apply to take part.
What's next?
The Mardi Gras board could end up having the final say in coming weeks.
A bid to ban NSW Police from marching in next year's Sydney Gay and Lesbian Mardi Gras has been voted down.
All three different proposals put to the Mardi Gras annual general meeting on Saturday morning to determine whether NSW Police would be allowed to march were defeated.
The decision means the status quo will remain in place for now and NSW Police will need to apply to participate in the parade, along with every other participant.
The first motion defeated by a narrow margin was the board's, which was based on community consultation and proposed that the force not be allowed to march "until such time as they demonstrate a commitment to improving relationships with LGBTQIA+ communities".
The second option from Rainbow Labor, also defeated by a narrow margin, would have allowed police to march as long as they did so out of uniform and without their service weapon.
While Pride in Protest's motion sought to ban police from marching all together.
Pride in Protest has consistently campaigned for the exclusion of police from the parade, citing a culture of homophobia within the force an adversarial attitude towards unsolved gay hate deaths.
It comes after an ABC News investigation into the culture within the force revealed allegations of homophobia and bullying.
Police inclusion in the parade has divided the LGBTQ+ community.
Earlier this year, Mardi Gras conducted community consultations and found that 54 per cent of those surveyed believed police should not march.
Rainbow Labor NSW co-convenor Mits Delisle told the ABC on Friday that he felt the issue was "not a big deal" and that "the broader community wants police to participate".
The result of Saturday's meeting means the Mardi Gras board could end up making the final decision in the coming weeks.
NSW Police welcomed the outcome of the meeting, calling the parade "an important and significant annual event". (AAP: Steven Saphore)
NSW Police said in a statement it "welcomes" the outcome of the meeting.
"The NSW Police Force has been marching in the Sydney Gay and Lesbian Mardi Gras since 1998 and for the LGBTQIA+ staff and allies within the NSW Police Force as well as their friends and family, this remains an important and significant annual event," the statement said.
Member for Sydney Alex Greenwich also applauded the decision, saying it was a vote for inclusivity but acknowledged the community's longstanding issues with police.
"There is no denying the police have more work to do to improve on their brutal past towards the LGBTQ community," Mr Greenwich said.
"But I'm confident they are working hard on this and are focused on improving LGBTQ+ safety.
"This is a good outcome in the journey of improving the Police and LGBTQ community relationship."