Hundreds of Indigenous people have been protesting for two weeks outside the port terminal of US agribusiness giant Cargill in northern Brazil to draw the attention of President Luiz Inacio Lula da Silva's government.
They have been angered over the dredging and development of Amazon's rivers for grain exports.
The government said in a statement that it suspended the process of contracting a company for annual dredging work on the Tapajos River in the state of Para "as a gesture of negotiation."
Protesters have demanded the cancellation of a decree signed by leftist leader Lula in August which designated major Amazonian rivers as priorities for cargo navigation and private port expansion.
They also want the cancellation of a federal tender issued in December worth 74.8 million reais ($14.2 million) to manage and dredge the Tapajos River.
In addition to suspending the dredging process, the government promised on Friday to consult with local communities before proceeding with any work.
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