But the Mayor of Doncaster Martin Winter yesterday insisted he still believed the academy offered a "once in a generation opportunity" for the villages of Conisbrough and Denaby.
Parents and teachers have mounted a vocal campaign against the plan to
replace Northcliffe School, which is currently in special measures, with a £25m academy sponsored by millionaire Sir Peter Vardy.
The Yorkshire Post understands inspectors who visited Northcliffe were very positive about its progress towards leaving special measures.
A decision on the scheme was due next week – but the council now says it cannot move forward until after it considers the Government's new five-year plan for education.
Academies are state-funded but are outside local authority control and are built to replace schools considered to be failing. A sponsor helps meet the start-up costs and in return controls the governing body and "ethos" of the school.
Opponents of the plan have argued Northcliffe School should be given more time to improve and control of education in the area should be kept with the local authority and parents.
Mayor Winter said: "The Government's Five-Year Strategy for Children and Learners means we must now undertake a comprehensive assessment of its impact on our new 14-19 Strategy and all our major projects.
"I believe the proposed academy for Conisbrough and Denaby offers a once in a generation opportunity for these communities and I am determined we make a decision that is right for local people and has their support. That is why I have decided to defer my Cabinet's decision until early autumn so we can look at the bigger picture."
Campaigners welcomed a pause in moves towards building the academy as a chance for a proper debate.
The National Union of Teachers representative at Northcliffe, Matthew Bailey, said: "It is encouraging they are stopping and thinking about it. I think if they listened honestly to the people of Conisbrough they would see they don't want the academy."
Through the Emmanuel Schools Foundation, Sir Peter Vardy already funds a city technology college in Gateshead and an academy in Middlesbrough and building work has started on another academy in Thorne, near Doncaster.
A foundation spokeswoman said: "The Emmanuel Schools Foundation is in Doncaster at the invitation of Doncaster Council which has much wider considerations than just the proposed academy in Conisbrough.
"If the council feel they need more time to consult and to consider then we have no objection."
The Schools Organisation Committee in Barnsley has approved plans to close the Elmhirst School to make way for a new academy.
The United Learning Trust, which is already sponsoring five academies across the country, is due to sponsor the Barnsley scheme. The Elmhirst is due to close in 2006.
james.reed@ypn.co.uk