The purchase is funded as a joint initiative and only possible through the contribution of $3.5 million from Koala Conservation Australia (KCA) as well as from the NSW government's landmark $193 million dollar investment in koala conservation.

The final sale price of the land on The Ruins Way by a private owner has not been disclosed.

The 200 hectares of land was initially listed on the market for residential development at $11 million. Six hectares will remain with the owner.

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Environment Minister Matt Kean said the purchase will protect core koala habitat of strategic importance in the Port Macquarie region which will help us reach the Government's target of doubling the koala population by 2050.

"There has been sustained community advocacy to see this land purchased, and I want to pay particular tribute to the local member Leslie Williams and the KCA who have been instrumental in making this happen, their work will leave an enduring legacy for the community for generations to come," Mr Kean said.

"Our iconic koalas are increasingly threatened by the loss and fragmentation of habitat, this purchase will protect critical habitat from development and ensure the koala population in this area is safeguarded forever."

The land will expand the footprint of the Lake Innes Nature Reserve and will be declared an Asset of Intergenerational Significance.

Member for Port Macquarie Leslie Williams said this is a victory for the many advocates in the local community who have fought hard for this result.

A petition with more than 24,000 signatures was tabled in Parliament on November 24 by Guulagu Koala Custodians group on behalf of the Port Macquarie community.

The Guulagu Koala Custodians group was formed after the devastation of the 2019 bushfires to further education about the critical status of koala population, including the role that traditional ecological knowledge and land management practices play in contemporary koala conservation.

The Koala (Guula) is a totem animal to the Birpai people and maintaining this population is of great cultural and spiritual importance to contemporary Birpai families.

Members of the Shelly Beach Residents Action Group also added their voice to the mix.

"The conservation of koalas on this land will be boosted by an ongoing partnership between the NSW National Parks and Wildlife Service and KCA - a great demonstration of what can be achieved when government works closely with the community," Mrs Williams said.

"It's such welcome news here in the Port Macquarie region that the NSW government has recognised the significance of this land through our passionate local community campaign.

"Our koala population here in Port Macquarie is beloved - a key part of our community's identity, their conservation helps to support the tourism economy attracting tourists who want to enjoy the magic of seeing a koala in the wild.

"Most importantly, our community has the surety of knowing their children for generations to come will see koalas in the wild, which is cause for celebration."

Chairperson of Koala Conservation Australia (KCA) Sue Ashton said they are delighted that this purchase is finally being made a reality.

"This is a huge win for the koala population in the Port Macquarie region and will play a critical role in helping the population recover after the terrible Black Summer bushfires," Mrs Ashton said.

"KCA is very pleased to partner with the NSW government to secure this lasting legacy for one of our most iconic species."

As well as the koala, three additional threatened species (eastern coastal free-tailed bat, glossy black cockatoo and grey-headed flying-fox) have been recorded on the property. The swift parrot, which migrates to the region each year from Tasmania, is also known to flock in the area.

It is expected more will be found through survey effort, noting another 44 threatened species that may use habitat on the land have been recorded within a two-kilometre radius of the property.

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