Talks between McDonald's and a group of protesters could begin soon after they were ordered into mediation by a Victorian Supreme Court judge.
The protesters are against the fast-food giant's plans for a restaurant at Tecoma, 34km east of Melbourne.
They had tried to thwart demolition at the site by trespassing and obstructing workers, with some even planting themselves on the roof.
Yesterday's decision comes in the same week that a four-person delegation from the group brought a petition against the restaurant to McDonald's headquarters in Chicago.
The online petition received almost 100 thousand signatures.
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