Fremantle has bowed to pressure from the federal government and agreed to reinstate its citizenship ceremony on Australia Day.

The federal government and the Western Australian city council have been embroiled in a public spat over the latter’s plans to hold its citizenship ceremonies on its “culturally inclusive alternative” to Australia Day, which Fremantle named One Day.

Fremantle council had intended to stand its ground.

But on Thursday Alex Hawke, the federal assistant immigration minister, informed the council it could not hold the ceremonies “under any circumstances” and imposed a 5pm deadline for their reply.

Fremantle conceded, with new citizens to be given the option of attending a ceremony on 26 January or 14 March.

The mayor, Brad Pettitt, told WA Today an informal ceremony would be held at the One Day event on 28 January “in recognition of the many migrants who have chosen to make Fremantle their home”.

He said new citizens had told him they would be happy to have their new status conferred at the One Day event, and he had received “strong support from our community, and beyond, about this decision”.

“This was never about the timing of the citizenship ceremony – it was included in the One Day program, as we felt that new citizens would enjoy the opportunity to be welcomed to our community at such a large and exciting event.”

Fremantle announced plans for One Day, on 28 January, early this year out of respect for Aboriginal and Torres Strait Islander people who regard 26 January as Invasion Day.