The Federal Court has dismissed the landmark claim by nine Larrakia families over 575 kilometres of crown land in Darwin and nearby Palmerston.
Judge John Mansfield found the Larrakia had not maintained a continuous observance of traditional laws and customs on the land, a requirement for native title to be recognised.
But Norman Fry, from the Northern Land Council, says it will appeal the decision on behalf of the traditional owners.
"Everybody in the Northern Territory, and particularly in Darwin here, we all know who the Larrakia people are. They are not invisible people. They are here." He says.
"And we will be seeking avenues for appeal to this particular decision. We don't believe that the Larrakia people can be dismissed so quickly."