A Local Aboriginal Land Council has hit back after a breakaway Aboriginal group's compensation claim was rejected because a deal had already been negotiated.

Wiradjuri activist Paul Towney announced on social media that he and elders in the central tablelands city would meet Orange City Council, in central-western NSW, to discuss "compensatory payments" for a sports stadium.

The announcement led to a backlash as Orange Council had already reached an agreement with the Orange Local Aboriginal Land Council, the representative body for local Aboriginal people under state legislation.

Speaking to Sky News host Chris Kenny, Roy Ah-See, a spokesman for the local land council, said the council had been in negotiations for the last six years.

"This [agreement] didn't happen overnight. It took

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