NSW Premier Gladys Berejiklian struck a deal with her Nationals colleagues on Friday, three weeks after NSW Nationals leader and deputy premier John Barilaro threatened to blow up the coalition government if concessions weren't made.

He had argued the laws were a "nail in the coffin for farmers" and in September threatened to take his MPs to the cross bench over changes to the policy.

The premier stared down Mr Barilaro's threats and issued an ultimatum that either the Nationals MPs support the government or its ministers would be sacked from cabinet.

Ms Berejiklian on Friday said she had reached a balanced outcome with her coalition partner over the State Environmental Planning Policy (Koala Habitat Protection) which will be taken to cabinet on Tuesday.

Acting Deputy Premier Paul Toole said under the changes farmers will be primarily able to continue doing what they're currently able to do.

"Unless there are significant changes to the use of your land, you will not be impacted by the SEPP - that's when it triggers off," he told reporters.

"Farming has been taken out of that SEPP."

The Nationals wanted several changes made to the policy including the removal of the controversial koala mapping, which was agreed to.

They were concerned the policy would limit land use on farms and the ability to rezone areas for development as more trees would be classed as koala habitat, which would restrict the clearing of land.

Australian Associated Press