Direct negotiations are underway between the Department of Primary Industries and Woolworths after the supermarket giant came out on top of an expression of interest process for the sale of the Crown land parcel.

Lands and Water Minister Niall Blair and Port Macquarie MP Leslie Williams yesterday met with Port Macquarie-Hastings Council representatives about the Plaza car park and Port Macquarie Chamber of Commerce about the foreshore's future management.

The minister acknowledged there was mixed community opinion about the proposed car park sale to Woolworths.

Mr Blair said the negotiations could result in a sale or could result in the Plaza car park site sitting there as is.

"We need to see where the negotiations end up," he said.

"The thing I am not going to do is intervene at the moment between two parties that are negotiating and have been through that public [expression of interest] process."

Woolworths proposes to buy the Plaza car park and develop the land along with its neighbouring Food for Less site.

The Port Macquarie Chamber of Commerce pitched its proposal for a state-owned corporation to be vested with Crown Land from Settlement Point to Town Beach to drive the foreshore plan of management.

"I think what they are trying to achieve [through the corporation proposal] is exactly what we are talking about with the plan of management," Mr Blair said.

"We think we have got the mechanism within Crown Lands to do that without setting up a whole other entity."

Port Macquarie Chamber of Commerce president Hadyn Oriti said the chamber had asked for a state-owned corporation but it realised there was more than one way to skin a cat.

"We are looking for an ongoing mechanism to ensure there are appropriate resources, both monetary and human, in place to implement the plan of management and the vision for the foreshore," he said. The government will come back to the chamber with details about how it will work towards the process of implementing the foreshore plan of management.

Mrs Williams said it was important to discuss how the plan of management was implemented.

Meanwhile, Mr Blair said the meeting with the council was a good chance for everyone to get together and express their views about the Plaza car park.

Port Macquarie-Hastings mayor Peter Besseling said the meeting was respectful.

"It is clear the state government is proceeding with negotiations to effect the sale of the Plaza car park," he said.

The council opposes the land sale to Woolworths.