The Hobart City Council is set to consider handing public land back to Tasmania's Aboriginal people.

At its upcoming meeting on Monday evening, Council will consider in-principle approval for the hand back of a small parcel of land at Queens Domain, northeast of the Hobart CBD, to the Aboriginal Land Council of Tasmania (ALCT).

The proposal identifies approximately 4.5 hectares of land to be managed and cared for by Aboriginal rangers, as well as for an Aboriginal-owned and operated cultural centre.

ALCT general manager, Sarah Wilcox, highlighted the proposal's significance.

"This has come out of many years of conversations," Ms Wilcox said, The Mercury reports. "I think the council is demonstrating real leadership.

"It's a truly meaningful opportunity in our relationship with the City of Hobart, and with all Tasmanians and Australians."

Located off Domain Road, the parcel on land has been held by Council as a public reserve for more than a century.

It includes the top of Upper Domain Road and part of the summit car park.

Speaking to ABC Radio, Hobart Lord Mayor, Anna Reynolds described the area as "a lovely, very natural area of the Domain ... very typical of a grassland ecology that's been the result of Aboriginal land and fire management practices over thousands of years".

"There are early colonial accounts of campfires being spotted up there, smoke coming from that sort of area, and an incredible number of middens which go quite high up the hillside," she said.

If successful, the vote would permit the council's CEO, Michael Stretton, to lead investigations into establishing an Aboriginal-owned and operated cultural centre at the site.

According to Pulse Tasmania, Mr Stretton said the proposal came from the Tasmanian Aboriginal Centre (TAC), which wrote to Council last year to seek support for a location to share in its words, the state's "true history".

"It could also host cultural items, offer a performance space for cultural expression and support Aboriginal food enterprises and other tourism activities, among other initiatives," the TAC wrote in their submission.

In support of the TAC's submission, the ALCT then selected the Domain site and asked for the land to be returned.

"It is our view that the very best way to protect the land upon which the Queens Domain now sits is through its return to the ownership of the Tasmanian Aboriginal community," the ALCT wrote.

"Our vision is to establish a cultural centre that would respectfully house sacred cultural items for the first time in Lutruwita/Tasmania, while also creating spaces for interpretation, exhibition and the sharing of stories by Aboriginal artists and cultural practitioners."

On Thursday Greens leader, Rosalie Woodruff, threw her support behind the proposal.

"The Aboriginal Land Council has said this is an important area to return," Ms Woodruff said.

"We hope the recommendation for this move passes Council next week.

"We urge members to consider the land's history, and the positive move this return would signify, as part of their deliberation."

Ms Woodruff urged other councils around Tasmania consider the action of the Hobart City Council as an example of land returns to Aboriginal people.

"There are undoubtably culturally important parcels of land around this island state that could be returned to its first people," she said.

Ms Wilcox said she was hopeful the land return would be supported at next week's Meeting.

"We had a workshop with council not so long ago and there was a lot of very strong support from nearly every councillor in the room, which was surprising but exciting," she told The Mercury.

"There's this common misconception that land return means locking people out of a place. This is absolutely not the case.

"This is making sure that the place is cared for in perpetuity and that's going to be of benefit to everybody who goes there and values that place."

"I hope the wider community can see the benefits in this."