The Department of Primary Industries received notification on Thursday that Woolworths has withdrawn from sale negotiations.

The Minister said as a result, the expressions of interest process has concluded without a sale.

Port Macquarie MP Leslie Williams said she had made it clear throughout this process that any sale of the Plaza car park had to meet community expectations including no loss of car parking, no loss of foreshore and an activation of the foreshore. 

“If these outcomes were not able to be achieved through a negotiation with Woolworths or any other organisation then I believe that a sale should not go ahead," she said.

“The withdrawal by Woolworths from the negotiations with Crown Lands highlights that the NSW government’s insistence on a robust and transparent process that is in the community’s interest has been followed.”

The announcement comes after a community petition containing more than 12,500 signatures was tabled in parliament by Shadow Minister Michael Veitch. The petition was lead by Country Labor representative Kristy Quill.

Ms Quill believes the petition played a crucial role in influencing Woolworths' decision.

She hopes Crown Lands is committed to the plan for the foreshore which includes some form of appropriate development on the Plaza car park site.

Port Macquarie-Hastings Mayor Peter Besseling this week announced that council was clear in its opposition of the sale of the waterfront site to Woolworths.

“The news that the sale of public foreshore land to Woolworths, for a large supermarket development, will not proceed is very much welcomed by Port Macquarie-Hastings Council. As Reserve Trust Manager, council will await further advice from the NSW government as to its future intentions for the site.” 

Cr Besseling said council is clear in its support of the community in opposing the sale of the Plaza car park for a big box supermarket development.

"It is owned by the public and should remain in public hands, so the community can ensure that any future development of the site is in keeping with the amenity of the foreshore and the Port Macquarie CBD."

The call for greater transparency on the current process surrounding the proposed sale of the site has been the focus of community concern for months, resulting in a Change.org petition and a second petition championed by Country Labor representative Kristy Quill. 

The Hon Courtney Houssos MLC spoke to the issue in the Legislative Council last month saying the Hastings community has made it loud and clear to the local member it does not want a waterfront Woolworths.

"The petition garnered more than 12,500 local signatures and now serves as an undeniable indication that Port Macquarie does not want this piece of Crown land sold off. The petition is a credit to the local campaigners who set about to make sure community opposition to this sale is well known," she said.

"Whether or not it is convenient for those opposite to admit, the local community in Port Macquarie feel like this process was flawed, they feel it did not take into account their concerns and, ultimately, they feel it was a bogus process set up to favour one outcome and ignore the rest."