A remote Australian community has brokered peace in a feud that has lasted nearly three years.

Trouble started in the Northern Territory Community of Yuendumu when a man was killed in 2010; it started an often violent back-and-forth between two factions that resulted in numerous injuries from fights and riots.

Now a team of more than 20 mediators has helped install a 300 day peace period, which will allow the traditional annual sports weekend to go ahead for the first time in two years.

Members of the 800-person community say they are glad peace has been achieved, and welcome the return of the sports carnival that brings to region to life.