The Dja Dja Wurrung Clans Aboriginal Corporation has recognised the significance of Catto Lodge as it plans for the future of the Kooyoora State Park.
Traditional Owners had planned to deconstruct the lodge, which is named after Stanley Ross Catto, who was influential in developing the space as a park.
The park includes the Melville Caves.
Materials from Catto Lodge were to be repurposed in other aspects of the park, over which the Dja Dja Wurrung people share joint management.
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Members of the Catto family called for the lodge to be saved, in recognition of its history as a gathering place and events space in the past 70 years.
Member for Ripon, Louise Staley, and Member for Murray Plains, Peter Walsh, weighed in on the issue, calling plans to deconstruct the lodge "divisive".
After a series of meetings with members of the Catto family, Dja Dja Wurrung Clans Aboriginal Corporation chief executive Rodney Carter is calling for the structure to be retained as part of the park.
"Short-to-medium term I don't think it's good for the relationship to be deconstructing the lodge," Mr Carter said.
The Dja Dja Wurrung people have joint management of six central Victorian parks.
The Kooyoora State Park is the first its Traditional Owners have started to develop.
Mr Carter expected convincing all those involved that the lodge should remain would be a challenge.
But he said the conversations the Dja Dja Wurrung people had been having with the Catto family and the broader community had provided learning opportunities.
Mr Carter hoped further discussions about the lodge's place in the park could be had when the community was ready.
Matt Catto, one of Stan Catto's grandchildren, welcomed the recognition of the significance of the lodge and of the family's contribution to the space.
"If it wasn't for Stan Catto's work back in the day the park wouldn't be what it is," Mr Catto said.
The Catto family was supportive of the Dja Dja Wurrung's plans for the park, aside from dismantling the lodge.
Both Ms Staley and Mr Walsh said the understanding the Catto family and Mr Carter had reached was a positive outcome.
"I think there's clearly strong community support for retaining the lodge," Ms Staley said.
A Change.org petition launched by the Catto family received more than 1630 signatures.
Mr Walsh, also the shadow minister for Aboriginal affairs, said he didn't see any reason why the community, the Catto family and the Dja Dja Wurrung wouldn't work together for the best for the Kooyoora State Park as the project progressed.
Both Mr Walsh and Ms Staley got involved in the issue after being contacted by members of the Catto family.
The Dja Dja Wurrung community is looking to address immediate areas for improvement in the park, including walks and other infrastructure that had become degraded and eroded.
"The community's spoken about maybe reintroducing rock art to the site," Mr Carter said.
There were talks about removing obstructions to the natural spring in the park, allowing it to meander through the picnic area.
Mr Carter said the community was also planning on constructing a meeting space shelter.
The design process is still underway. One of the park development's aims is to put Djaara back into the landscape.