Members of the organisation and wider LGBTQI community have been asked to give feedback over the next three weeks before a decision is made at the next AGM.
The force has participated in the parade for two decades but was uninvited in 2024 after an officer was charged with the murder of couple Jesse Baird, 26, and Luke Davies, 29.
Police were ultimately allowed to march in plain clothes but ongoing debate about their presence in the parade intensified around the event.
In a statement, the organisation said police participation had been a topic of ongoing discussion and the board recognised the importance of addressing concerns through a structured process.
"Our aim is to ensure that all voices within our community are heard, and that members have the necessary information to make informed decisions on this issue," it stated.
Police participation in the annual parade has been 'a topic of ongoing discussion', the board says. (Esther Linder/AAP PHOTOS)
An independent consultant will create a report based on feedback before the issue is voted on at the next AGM.
"The Board will not direct how members should vote; our role is to ensure that the decision is based on comprehensive and unbiased data," the statement said.
First held in 1978 as a protest against discrimination, the Sydney Mardi Gras parade is one of the world's largest LGBTQI events.
An estimated 120,000 spectators watched 12,500 participants march along inner Sydney's Oxford Street in March 2024.
The NSW Police Force says it 'takes pride in its role as a leader for inclusion and diversity'. (Paul Braven/AAP PHOTOS)
Officers received a positive reception as they walked alongside NSW Police Commissioner Karen Webb and Police Minister Yasmin Catley, surrounded by on-duty colleagues in uniform.
Operational policing of the parade is mandated under NSW law and will continue as it is not part of the consultation.
A NSW Police spokesperson said the force works with Mardi Gras organisers to ensure the safety and success of its events and looks forward to continuing that in the future.
"The NSW Police Force is dedicated to supporting LGBTIQ communities and takes pride in its role as a community leader for inclusion and diversity," they said.
It comes as a study released in April into three 2023 pride events suggested heavy-handed policing cast a shadow over celebrations.
Researchers from UNSW Sydney, the University of Sydney and the University of Newcastle highlighted "intensive and aggressive" actions, invasive questioning as well as "humiliating and potentially unlawful searches".
Their work was based on police reports and observations made by volunteers who attend events to educate people about their legal rights.
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