Occupy Fredericton says it is staying put, despite being faced with a Friday deadline to vacate city hall property.

The group was asked to vacate the space to make way for the city's Christmas tree, but after meeting with the mayor, the Occupiers say they're not going anywhere.

"I think the bottom line is, I've asked them to leave and they don't want to leave," says Mayor Brad Woodside. "So now we have to work in the context of that and that's precisely where we are right now, to try and make it as best we can for the community, both inside and outside Occupy."

The occupiers say they will consider downsizing the camp site but they won't leave it entirely.

They have camped in front of Fredericton City Hall since mid-October and they say they don't want to give up the space, which sits along a busy street in the city's downtown core.

"Part of what we've seen in other cities is occupations that have...for instance, in Halifax...moved voluntarily and then not been allowed back after they've offered to do that," says Occupy Fredericton protester Ella Henry.

"So we're trying to work out a compromise that works to both have the Christmas tree lighting ceremony, as well as keep a smaller, sort of scaled-back presence while that's happening."

Woodside says he expects the Occupiers to downsize their camp site this weekend, before the city's Christmas tree arrives on site. He also says he will reassess the situation next week.

"I've told them I wouldn't force them to leave and wouldn't send police in, so we're going to have to work around that and that's what I'm doing right now," he says.

With files from CTV Atlantic's Andy Campbell