The former Boolaroo Police Station at Speers Point will be transferred to the Biraban Local Aboriginal Land Council following a successful land claim.
The land covers about 1,841 square metres across three lots that include the 1970s-constructed former Police station and a house connected to the station.
The land will be transferred to Biraban as a freehold title.
Biraban land council chief executive Ashley Williams said the property would be used as the land council's office and for shared community space.
"Our current office costs about $60,000 a year in rental fees so securing this land is awesome news that will save us a lot of money that we can put back into our programs to support the community," Ms Williams said.
Water, Property and Housing Melinda Pavey approved the claim this week after it was assessed under the Aboriginal Land Rights Act 1983.
Ms Pavey said the government was committed to the Aboriginal Land Rights process to support economic, social and cultural outcomes for Indigenous communities.
"Over 1,500 NSW land claims were assessed in 2019-20 with 280 land grants approved. This was the highest number of claims ever processed and grants ever made in a single year since the Aboriginal Land Rights Act was introduced in 1983.
"More than 150,000 hectares of land have now been granted to Local Aboriginal Land Councils through Aboriginal Land Claims since the Aboriginal Land Rights Act began."
Parliamentary Secretary for the Hunter Taylor Martin welcomed the outcome.
"If the assessment of a claim against statutory criteria in the Act determines the land is claimable Crown land then the land is granted and transferred to the Land Council.
"A land claim on the former Police station site was lodged by Biraban Local Aboriginal Land Council and has been approved following an assessment process under the Act."
