Sydney's Victoria Barracks in Paddington will not be sold off as planned. ( ABC News: Paul Pandoulis )
Defence sites including Victoria Barracks in Sydney will not be sold as planned.
It comes after heated protests against the sale from across the political spectrum.
The site and three others will be transferred from Defence to Finance and the prime minister will give more details later today.
Prime Minister Anthony Albanese has vowed to keep Victoria Barracks in Sydney in public hands, following widespread backlash after plans for the heritage-listed site to be sold off.
The site and three others, including Victoria Barracks Melbourne, Fort Queenscliff and Point Cook (RAAF Williams), will be transferred from Defence to the Finance department.
Victoria Barracks in Sydney is one of the most high-profile of 67 Defence sites that were due to be sold after an independent estate audit in February this year, in a bid to generate $1.8 billion for the government.
The projected sale of the site, with it's 166-year history, spurred widespread backlash from all sides of the political spectrum, with the Coalition, Greens, teal independents and One Nation condemning the move.
Former prime minister John Howard, joining a recent protest against the sale, accused the government of "indifference to our proud national and military history".
Mr Albanese said the site was no longer for sale.
"This program creates opportunities to open Defence's historic sites and buildings to the public, and to commemorate our nation's history."
Defence is the country's biggest landholder, with 70 major bases and 3.8 million hectares of land.
Defence Minister Richard Marles said personnel would be moved off the properties and they would be opened up to the public, adding that Defence sites needed to be "fit for purpose".
"Given the strategic landscape we face, we cannot afford to be wasting money," he said.
"We need to look at how we best use defence money for defence capability."
Finance Minister Katy Gallagher said the heritage of each of the sites was protected by law and public ownership would ensure they would be preserved for future generations.
Mr Albanese, Mr Marles and and Senator Gallagher are due to give an update about the Defence estate audit later today.
