It comes after a development application for a 149-unit building on the site, at the corner of John Gorton Drive and Terry Connolly Street, was rejected in December.

Zapari challenged the decision at the ACT Civil and Administrative Tribunal. In a statement, Zapari said an agreement for a 140-unit, seven-storey building had been reached.

When the development was rejected in December, in its notice of decision ACTPLA said the development "would have an adverse impact on the neighbourhood and landscape character of the area".

But a spokesman from ACTPLA said "the revised proposal addressed the desired character for the site and achieved an improved amenity outcome for future residents of the development".

"The Planning and Land Authority is of the view that the revised proposal, with the conditions imposed with the consent of the tribunal will be an approvable development having regard to the locality and RZ5 High Density Residential zoning of the site," the spokesman said.

In a statement Zapari said this was a win for the industry.

"The successful win by Zapari within the judicial pathway is a strong and resounding industry confirmation that if the developer is willing to do the right thing and create a good high quality urban outcome, higher densities are able to be achieved," the statement said.

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Zapari managing director Nick Skepev said the development would be one "you would expect to see in Canberra's more affluent suburbs like Braddon or Kingston".

"This mediated outcome is a testament to good quality design triumphing, and sets a new benchmark for quality design along John Gorton Drive," he said.

"The complex and ambitious DA approval is a testament to the strong internal capability of Zapari to work with all the stakeholders and execute favourable outcomes."

The Weston Creek Community Council was a party to the tribunal proceedings. The council had disapproved of Zapari's plans. The Canberra Times sought comment from the Weston Creek Community Council but a spokesman they were not in a position to do so at this stage.

The 149-unit proposal was a reconsideration attempt Zapari after an application lodged in 2018 for 212 units was knocked back.

Both proposals received significant community push back.

During public consultation, 90 written representations were received for the 149-unit development application, of those only 12 supported the proposal.

Zapari's development drew the ire of local Molonglo residents and a group called "Save Molonglo" was set up in response to the original 2018 application.

The case echoed a similar one between POD Projects and ACTPLA in November. POD Projects had put forward a development application for 107 dwellings on a site sold for a maximum of 40 dwellings.

POD Projects reached a pre-hearing agreement for 97 units.