The government has asked for more time to consider council concerns about the opening of an asylum centre for up to 1,500 men at a former RAF base.
Hambleton District Council sent the Home Office a letter in May stating it would mount a legal challenge to stop any centre at Linton-on-Ouse near York.
The proposals, first revealed in April, are part of the government's new policy designed to cut the amount spent on housing asylum seekers in hotels.
The Home Office has said the centre at the former RAF station would be as self-sufficient as possible
The original letter, sent by council leader Mark Robson outlined why "the Home Office may have acted unlawfully in their intention to use the site at Linton-on-Ouse as a centre for asylum seekers."
It also "highlights the adverse impact on the council, its taxpayers and communities and requires the Home Office to justify its position".
Mr Robson said the authority had now received a "holding response" to the letter with details of the extension.
He said the response said that the secretary of state was also considering the council's request for a 28-day rather than seven-day notice period if a decision was taken to start moving people in to the centre.
Mr Robson said: "We have been further reassured by the Home Office that it agrees that the time for commencing any legal proceedings will not start until it has made a final decision and that this will not be made before 15 July when we expect to receive the response."