The federal government has advised the Northern Territory government not to renew the Jabiluka Mineral Lease, enabling the site's incorporation into Kakadu National Park.

Energy Resources Australia (ERA) has held the licence for the Jabiluka site since 1991, however no mining has taken place.

The lease is set to end on August 11.

Jabiluka sits alongside the former Ranger Uranium Mine, also owned by ERA and their major shareholder, Rio Tinto, which has been under rehabilitation since 2021.

The decision will not impact Australian uranium supplies, as the Jabiluka site has never been mined.

The federal government will begin the process of incorporating the site into Kakadu National Park, aligning with the wishes of the Mirarr Traditional Owners.

Senior Traditional Owner Yvonne Margarula highlighted the cultural significance of Jabiluka to the Mirarr people and their efforts to protect it.

"Jabiluka is a significant place for Mirrar people," Ms Margarula said.

"It is the site of strong cultural significance - a place we have fought to protect.

"I thank all people and governments who have worked with Mirrar over the last 30 years to ensure the protection of Jabiluka."

This move follows a long-standing campaign by the Mirarr and the Northern Land Council against uranium mining on their sacred land.

In May, the Northern Territory government announced that a Reserved Land area would be established to prevent future mineral title applications over the Jabiluka area once the lease expires on August 11, 2024.

Minister for Resources and Northern Australia Madeleine King said the decision would end decades of uncertainty about the project.

"ERA and their major shareholder, Rio Tinto, rightly committed to not developing the site without the support of the Mirarr Traditional Owners, who are completely opposed to the renewal of the lease," she said.

"I have met with all significant stakeholders in the Jabiluka Mineral Lease.

"This decision provides clarity and certainty to all parties."

The NT government said the future use of the site rests with the federal government, in consultation with key stakeholders.

The Australian Conservation Foundation welcomed the decision, praising it as a significant victory for the Mirarr Traditional Owners and for conservation efforts in Kakadu National Park.

Minister for the Environment and Water, Tanya Plibersek, said they can now work with Traditional Owners to incorporate Jabiluka into Kakadu National Park.

"Labor protected Macquarie Island, Kakadu, the Daintree and the Great Barrier Reef. And today we are expanding on that legacy," she said.

"Kakadu is one of our most precious places - Kakadu's rock art documents Indigenous creation stories and makes up one of the longest historical records of any group of people in the world.

"We'll do that alongside Mirrar Traditional Owners who have been successfully looking after this land for tens of thousands of years."