NSW Police Commissioner Karen Webb said she was surprised at the Mardi Gras board decision on Monday night, which followed a serving officer being charged with the murders of two men.
"I have to accept their decision ... but I'd just like to meet with them and talk about how this may adversely affect police, particularly members of the gay and lesbian community," she told ABC Radio on Tuesday.
Ms Webb acknowledged people within the LGBTQI community were divided, adding she would talk to festival organisers to "see how we get things back on track".
A police representative confirmed the invitation to march in Saturday's parade had been withdrawn on Monday night.
The debate over police participation in the Mardi Gras parade has intensified after the arrest of Senior Constable Beau Lamarre-Condon, 28, over the alleged murders of Jesse Baird, 26, and his boyfriend Luke Davies, 29.
The killings allegedly occurred at Mr Baird's home in inner-city Paddington, not far from where the parade will take place.
"Our community needs space to grieve the loss of Jesse and Luke who, before this tragedy, would have been here celebrating with us at the festival," the Mardi Gras board said in a statement.
NSW Premier Chris Minns says police not marching in the Mardi Gras parade would be a step backwards. (Steven Saphore/AAP PHOTOS)
Investigators allege Lamarre-Condon's crimes followed a months-long campaign of "predatory behaviour" towards Mr Baird, who he briefly dated.
The senior constable previously marched in the parade with the NSW Police contingent.
Other floats would have boycotted the parade if police were allowed to march due to grief and extreme anger in the community, Pride in Protest spokeswoman Charlie Murphy told AAP.
"The relationship between police and the community is at complete rock bottom and there is no confidence and trust in them," she said.
But leading politicians have backed police marching.
Prime Minister Anthony Albanese said relations have come a long way since police arrested 53 marchers at the inaugural Mardi Gras in 1978.
"I think it's been very good that the police have marched ... the relationships have been turned around and have been positive, but I understand that the queer community in Sydney, in particular, are grieving what is an enormous tragedy," he told ABC Radio.
The decision on officers marching was ultimately one for organisers and police to make, the prime minister added.
Independent state MP Alex Greenwich, whose seat of Sydney includes Oxford St, where the march will take place, said the parade showcased the diversity of the community and all parties needed to work together to ensure NSW was safe.
"There are historic and ongoing concerns about policing practices relating to the LGBT community," he told Sydney radio 2GB.
NSW Premier Chris Minns said police marching in the parade was an important part of bringing communities together.
1800 RESPECT (1800 737 732)
Lifeline 13 11 14
15°C