The department that runs Parliament House in Canberra says it is open to temporarily displaying a memorial of a koala killed in bushfires in NSW, after initialling knocking back the donated artwork.
But the artists behind the sculpture say they are also hoping it might find a permanent home somewhere in the nation's capital.
Artists Gillie and Marc Schattner took to Facebook earlier this week to express their "shock and disbelief" after Parliament House declined to display their bronze sculpture of Lewis the Koala.
The Port Macquarie koala died of burns in the nation's ongoing bushfire crisis.
The artists said they had made four Lewis the Koala memorials and asked their fans where they should go, with the response leading them to donate two sculptures to New York, one to London and one to Parliament House.
The last was declined for policy reasons, the couple said.
"We are devastated given everything Australia has been through. To reject a memorial to support the enormous loss of wildlife seems heartless," they wrote on Facebook on Wednesday.
The Department of Parliamentary Services says it received the couple's proposal to display the sculpture on December 23 and explained it has a particular process for accepting artworks.
"DPS, while greatly appreciating the gesture from the artists, initially declined the offer and explained the appropriate processes for accepting artwork into APH," the department told AAP in a statement.
It stressed the artists are among many people wanting to help others in response to the fires.
"With these bushfires having such a devastating impact upon so many people and wildlife alike, naturally a great number of people want to assist those suffering in any way they can, both practically and symbolically."
The department said it is willing to consider an application from Gillie and Marc to exhibit the sculpture in line with the parliament's temporary exhibition policy.
But once the immediate bushfire emergency is over, it will work with the parliament to consider "an appropriate way to ensure fairness" for all artists wishing to display work in Parliament House recognising the tragedy.
The artists told AAP they will do "everything they can" to apply for the opportunity to have Lewis temporarily exhibited at Parliament.
But they are also waiting to hear back from ACT Arts Minister Gordon Ramsay on the likelihood of securing a permanent location for the sculpture in Canberra.
His office has vowed to get back to them by Monday.
The pair also posted on Facebook on Friday that they had received an "incredible display of public love and activism" after opening up about their rejection, with more than 500,000 reactions to their earlier post.
Australian Associated Press