South Canberra residents say they will oppose any move to build foreign embassies on parkland in the suburb of Yarralumla.
The National Capital Authority (NCA) recently scrapped plans to establish Canberra's new diplomatic estate on land next to the Federal Golf Club in Red Hill after a report found it would cost around $12 million to buy and develop the land.
The Authority is still considering land on Stirling Park and near the Old Canberra Brickworks, both in Yarralumla.
Local resident Peter McGhie says the parkland should be preserved.
"It is a piece of open space running down to the lake, it's a major amenity for the people of Canberra," he said.
"It's used by walkers, by school groups, by orienteers right on the edge of the lake, it's just a very valuable amenity for Canberra." Mr McGhie says he also has concerns about an increase of traffic in the area.
"Pedestrians basically walk on the street...the roads adjacent to the park don't actually go anywhere so there's very little traffic, it's just going to be a nightmare from a traffic point of view," he said.
The NCA says it will hold discussions with relevant government agencies before any further investigation of the sites.