The City of Moreton Bay has agreed to close a dedicated homeless camp.
Economic Development Queensland threatened to legal action over the "illegal" camp.
Homeless campers will be evicted after their registrations expire in 21 days.
The City of Moreton Bay council has agreed to shut a homeless camp in response to threats of legal action by state authorities.
The council turned Wyllie Park in Petrie into a free, designated camping site for homeless people in August.
Today, the council tabled a letter from Economic Development Queensland (EDQ) in which the state body promised not to take legal action if the council agreed to its list of demands.
The demands include not allowing any more homeless people to register at the site, and to evict the current homeless campers once their registration expires after 21 days.
EDQ chief executive Julian Simmonds warned legal action would remain on the table until every homeless camper had been removed.
"At this point in time, I do not consider it appropriate to withdraw the Show Cause Notice," Mr Simmonds said.
"However I commit to doing so once Council confirms that the trial registrations have expired and Wyllie Park is vacant."
After the homeless campers leave Wyllie Park, the council will be required to continue monitoring the site to ensure nobody else tries to camp…

