But while their leader Jenny Munro was on Thursday given official marching orders by the NSW Supreme Court, federal minister Nigel Scullion made a point of applauding her efforts to help secure a $5 million federal government grant that guarantees the land is used for affordable Aboriginal housing.

The minister stepped in to broker a deal between the tent embassy and the Aboriginal Housing Company when relations between the two groups hit a crisis point a fortnight ago. He said in a statement on Thursday that "had it not been for the groundswell of community feeling, including that of the tent embassy, we would not be here today".

He confirmed the Commonwealth government will give the AHC, which owns the land, a $5 million grant to help secure a $65 million low interest loan that would mean affordable housing can be built from the outset of construction of the Pemulwuy project.

"We have listened to the views of Jenny Munro, and we applaud her decision for a peaceful resolution," he said.

Outside court, Ms Munro suggested that protesters would not resist eviction.

"My body's been missing my home bed for a very long time ... We can walk away from this with our heads held high," she told Fairfax Media.

Before being served a writ of possession, evicting squatters from the land bordered by Eveleigh, Vine, Louis and Caroline streets, she said more than 450 days of "very hard work" had brought about what the protesters had demanded since erecting tents on the small but historically charged land on Sorry Day in 2014.

"That was always our battle cry from day one, that affordable housing be built for Aboriginal people. I think we can today rightfully claim that victory. Affordable houses will now be built for our people on Aboriginal land," she said.

The grant has been given on the condition that the affordable housing component starts and progresses at the same time as the commercial development and that AHC "gets the appropriate skills to manage the project".

While AHC leader Mick Mundine has not formally accepted the deal, he had argued the affordable housing would not be viable unless commercial parts of the project were built first. Tent embassy protesters did not believe affordable housing would ever be built and lodged two complaints with the NSW Attorney-General centring on doubts over the company's charitable remit.

Bitter feuding led to accusations of assault on both sides of the wrangle.

AHC chairwoman Alisi Tutuila said the Commonwealth offer looked "very positive" but further discussions between the company's board and the minister were needed to review the terms of the grant.

"The last 15 months have been very difficult," she told Fairfax Media. "We've always hoped for a peaceful resolution. We're excited to move forward and get this innovative development that will significantly benefit Aboriginal and Torres Strait Islander people."

Greens state MP David Shoebridge said securing the funds was "no doubt a significant victory, brought about by some amazing, resilient Aboriginal elders".

But, he added, it is a tragedy that the community had secured the money only on the steps of the court in the face of forced evictions from Aboriginal land.