Police Minister Yasmin Catley is "delighted" that Sydney Mardi Gras members have rejected efforts to exclude police officers from the organisation's iconic annual parade but has acknowledged the need for NSW Police to "do better" in building trust with the LGBTQI+ community "after some frankly awful history".

Sydney Mardi Gras members have narrowly voted against a motion to exclude NSW Police from marching in the organisation’s annual parade, paving the way for the force to participate in next year’s event.

A showdown looms at the Sydney Mardi Gras annual general meeting on Saturday, where members will vote on whether police should be allowed to march in the parade and under what conditions.

Four new Sydney Gay and Lesbian Mardi Gras board directors will be elected from a pool of ten candidates during the organisation's annual general meeting on Saturday.

NSW Premier Chris Minns has criticised "hypocritical" proposals that would prevent police from marching in the Sydney Gay and Lesbian Mardi Gras parade.

Queer activist group Pride in Protest will put forward the proposal at the Mardi Gras annual general meeting this weekend.