Totalling over 131,900 hectares, the former Bramwell and Richardson cattle stations found 630km northwest of Cairns will return to First Nations ownership under the Cape York Peninsula Tenure Resolution Program.
The program returns ownership and management of identified lands on Cape York Peninsula to local Aboriginal Traditional Owners, and ensures the region's iconic natural and cultural values are protected.
Environment Minister Meaghan Scanlon said the area has significant, undisturbed ecosystems that will become part of the protected area.
"Through the Cape York Peninsula Tenure Resolution Program, we will negotiate for which areas of the land will be made jointly managed national park and which areas become Aboriginal freehold land," she said.
"The lands also provide further opportunity to protect the Great Barrier Reef by stabilising two catchment areas that flow into the Great Barrier Reef lagoon."
Purchasing of the properties was split between the government, The Nature Conservancy Australia (TNCA) and the Wyss Foundation.
Director of Conservation and Science for TNCA Dr James Fitzsimons said the decision is a significant achievement for continued conservation in the state.
"The properties present significant conservation values with a number of priority ecosystems and species," he said.
"They also offer high value for resilience to climate change which is critical for biodiversity protection."
The land supports rainforests, heathlands, freshwater ecosystems and is habitat for many rare and threatened species of plants and animals including the Palm Cockatoo.
A spokesperson for Our Living Outback said support of Indigenous-led conservation in Cape York is imperative to protecting the land.
"This property occupies a critical place in the landscape of Cape York connecting surrounding environments. Today's acquisition for future divestment back to Traditional Owners has been long-awaited," they said.
"The new area supports 25 ecosystems that are already under-represented in our protected area network, two of which - lowland tropical rainforest and open woodland plains - are threatened.
"These areas are important on a global scale both naturally and culturally, so it's fantastic that they will be in safe hands as the Queensland government returns them back to the Wuthathi and Atambaya Peoples."
With the area designated to be included in the National Reserve System, the federal government will also contribute $1.95 million to the lands' purchase.
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