The NSW Government caved to public pressure last week and announced it would not truck contaminated soil from exclusive Hunters Hill to a site in western Sydney. Instead, they will push to send their sludge to Muckaty Station - where there are coincidentally no angry NSW voters.

NSW Finance Minister Andrew Constance said Muckaty may be a suitable disposal option for the radioactive material at Hunters Hill, which was created by an old uranium smelter.

"We have always said as long as there is a viable option on the table to transport this waste elsewhere, the NSW Government will pursue it," he said.

"We now have a Liberals and Nationals Government in Canberra that is listening and willing to work with us cooperatively."

The plan might solve a political problem for Premier Barry O'Farrell - the man who also wants the NT to receive less GST.

Successive NSW governments have dithered about what to do with the toxic waste and faced a backlash for proposing to send it to the suburbs.

But it will be of little comfort to Aboriginal traditional owners and other opponents who have launched a Federal Court challenge to the decision to build the national radioactive waste facility at Muckaty Station, near Tennant Creek.

The case is scheduled to be heard in June.

The decision was made by the former federal Labor government, but Prime Minister Tony Abbott said during the election campaign he did not propose to review it.