Vietnam has agreed to allow restricted access to the Long Tan battle site after overnight negotiations with the Australian Government.
While veterans will be allowed to visit the site, they will be able to do little more.
Visitors cannot wear medals or uniforms, carry banners or make speeches to commemorate the 50th anniversary.
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However an official party including ambassadors from Australia and New Zealand still intend to lay a wreath at the site.
Around 1,000 veterans have travelled to Vietnam to commemorate the battle which the Australian government had promised would be low-key and respectful.
But Vietnam says the decision was taken because of deep sensitivities in the local community and the effect it could have on the people.