Jacob Tammer-Spence was charged with the murder of Sitaleki Filihiahekava after the victim was stabbed outside a restaurant on Marrickville Rd in Sydney's inner west in September 2024.
A murder trial was set to begin on Thursday, before prosecutor Victoria Garrity told the NSW Supreme Court she would accept a guilty plea to the lesser charge of manslaughter.
"Not guilty to murder, but guilty to manslaughter," Tammer-Spence said when asked to confirm his new plea.
Some of Mr Filihiahekava's family attended court on Thursday to hear the final outcome and to pay tribute to their lost loved one.
One family member, who did not want to be identified, told AAP the 32-year-old was a keen footy player and boxing coach.
Life was a "lot more boring" since his passing, the relative said.
Tammer-Spence is a popular drill rapper who performs under the name Snoee Badman.
According to his profile on music database Genius, he was the first Australian to release a single from inside a maximum-security prison with No Hook Pt. 3.
"No way - I can't let that slide," he raps in his song 'Eye For An Eye'.
"Can't be satisfied 'till I see them bleed, that's eye for an eye."
The Snoee Badman has nearly 11,000 monthly listeners on Spotify.
Nearly two days passed between Mr Filihiahekava's death and Tammer-Spence, then 31, being arrested.
Police canvassed security footage from the busy suburban shopping strip during their initial search for the attacker.
Some restaurants had to cease trading following the stabbing, which occurred about 7.30pm.
Mr Filihiahekava was believed to have been dining with his family at one of the local restaurants, briefly meeting up with another man before he was stabbed, police said.
The Mascot Juniors rugby league club paid tribute to the former player following his death.
"Leki was a much-loved player of our club who played with his heart on his sleeve (and always with a joke and a smile), every time he took the field with those he called his brothers," the club said on social media.
Tammer-Spence will return to court for a sentence hearing on August 6.