ACT Chief Minister Andrew Barr will reconsider a ban on the greyhound racing in Canberra after NSW Premier Mike Baird broke a "locked in" commitment to close the industry.
The decision comes four days before the ACT election and despite Mr Barr's assurance the industry had no future in Canberra, claiming it turned a blind eye to animal cruelty for too long.
Mr Baird confirmed the policy reversal on Tuesday morning after facing intense political pressure from within his cabinet and rural politicians.
The proposed bans were announced after a special commission of inquiry report that found up to 68,000 greyhounds had been euthanised in 12 years because they could not, or were too slow, to race.
It also found an estimated 180 greyhounds each year sustained catastrophic injuries, such as skill factures or broken backs that lead to immediate death, during races.
Mr Baird said his government had "underestimated the community's desire to give the greyhound industry one final chance to reform".
Potential amendments include a controlled breeding program and total life-cycle management for greyhounds, including those unable to race and life bans for animal cruelty.
Greyhound trainers in Canberra are regulated in the NSW and Mr Baird's change of heart may mean they retain their licence to race for the foreseeable future.
Mr Barr, who has described the NSW decision as "disappointing", said the downsizing of the NSW industry would have significant implications on the viability of the industry in the ACT.
"But regardless of what happens in a regulatory sense, I still can't see a future for the industry in the ACT and the days of the ACT taxpayer propping up the greyhound industry are over," he said.
ACT Labor has also vowed to strip the industry of $1 million in annual taxpayer funding; a stance it believes is in line with community expectations.
"We will however make funding available to assist with a transition out of the greyhound industry in the ACT," he said.
The ACT Greens condemned Mr Baird's decision and said the Canberra community had made their opposition to the greyhound racing industry clear.
The greyhound racing industry in the ACT is small, exploitative and expensive," Greens candidate Caroline Le Couteur said.
"We need a plan to wind down this cruel industry, not open up a new market for the NSW gambling lobby to exploit."
Canberra based greyhound trainer Alan Tutt, who is also Canberra Community Voters' candidate for Ginninderra, said the decision to re-evaluate the ban was "terrific".
"I know a lot of trainers from Canberra and from outside the ACT who have been worried about what they are going to be doing in the future," he said. "This will be a relief to them and great news."
Mr Tutt said the ACT government needed to adopt all reforms implemented by NSW authorities to ensure uniform laws.
Canberra Greyhound Racing Club spokesman Kel Watt said the NSW decision was welcome and would give the government "a chance to stamp out the bad eggs".
RSPCA chief executive Tammy Ven Dange has strongly supported the proposed ban called for it left unchanged in Canberra.
"I think the most important thing for our politicians is to listen to the residents and supporters who actually live here," she said on Monday.
"They have said they're overwhelmingly in support of the ban," she said.
Sign up for our newsletter to stay up to date.