Police are sceptical that an estimated 40,000 people rallying for Palestine at the iconic Sydney Opera House can be kept safe.

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The NSW Court of Appeal on Wednesday heard a last-minute police challenge to the Palestine Action Group rally on Sunday, planned to start in Sydney's city centre and finish under the sails of the harbour-side Australian landmark.

Organisers initially suggested 10,000 people would attend before telling the hearing they now expected 40,000.

"If you're telling me 40,000 - and I don't think you can say it will be only 40,000," Assistant Police Commissioner Peter McKenna said under questioning from the organisers' barris

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