A wealthy Chinese developer appears set to withdraw a lawsuit against the Awabakal Aboriginal Local Land Council.

Tony Zong and his Sunshine Property Investment Group had alleged they were conned into a deal to purchase $12.6 million of Aboriginal land across the city. 

On Thursday, the Supreme Court heard the matter – involving disgraced former assistant tax commissioner Nick Petroulias – was “painfully close” to being resolved.

It’s understood Awabakal lawyers want the land council’s costs covered as part of the settlement. 

“There doesn’t seem to be terribly much at issue in the Sunshine matter now except for the terms of discontinuance,” Justice Darke said. 

A separate action against Awabakal is also making its way through the courts. 

Knightsbridge North Lawyers has placed a caveat over the old Newcastle Post Office while it pursues the land council for $26,743 in alleged unpaid fees. 

Justice Darke indicated mediation could occur if the matter remained unresolved when the case returns to court in February.