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 LGBQTI 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A police representative confirmed the invitation to march in Saturday's parade had been withdrawn on Monday night.
Debate over police participation in the Mardi Gras parade has intensified after the arrest of Senior Constable Beau Lamarre-Condon over the alleged murders of Jesse Baird and his boyfriend Luke Davies.
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 about its decision 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.
Advocacy group LGBTQ Domestic Violence Awareness Foundation said the debate about police participation in Mardi Gras should be kept separate from the issue of the alleged murders.
"This, as has been alleged by NSW Police, is a domestic and family violence crime and we must all acknowledge that this issue occurs at a disproportionately higher rate in LGBTQ+ communities," it said.
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.
Sydney state MP Alex Greenwich 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.
Premier Chris Minns said police marching in the parade was an important part of bringing communities together.
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