The council previously issued the service with a notice to vacate its 17-19 Bay Street premises, which will soon be demolished to make way for a carpark.

But at Rockdale Council's June 18 meeting, the service was granted a 12-month licence for use of council-owned premises at neighbouring 15 Bay Street.

The service's chairman, Mark D'Astoli, was relieved the council had pledged continuing support after months of uncertainty.

Rockdale Councillor Lesa de Leau said there was a clear need to support youth at risk and the council set a precedent in 2006 when it committed $300,000 towards relocating the Greek Australian Sports Hall of Fame and Royal Volunteer Coastal Patrol from a now demolished premises.

"Over eight years, this service, through good management and talented volunteers,has become the biggest non-profit community-based organisation in St George,'' Cr de Leau said. "I cannot accept council would jettison its commitment to community services.''

Brighton-Le-Sands student, Riordan Lee, 15, said he was concerned the proposed carpark was considered more necessary than a place for youth to go to in times of need. He said the centre helped St George youth with issues including family breakdowns, depression, alcohol and drug use, coping with school, bullying and racism.

"The centre also gives us somewhere to go and something to do after school,'' Riordan said. "Thousands of young people have used these services. What kind of message we are sending if we don't support it.

Rockdale Council general manager Chris Watson said the issue was being dealt with as a property matter and the council had foregone up to $1 million in rent from commercial tenancy of the premises over eight years.

Rockdale Mayor John Flowers said this effectively meant the council had subsidised a Commonwealth and NSW Government program.