Officers had said in a report to today's executive board meeting that a proposal for student flats and commercial use from one of the two other developers tendering for the building should be accepted and that there were issues over the sutainability of the consortium's plan.
Joint council leader and executive board chairman Andrew Carter said the agenda item had been withdrawn as RPCC was still in talks with fellow joint leader Richard Brett and that it wouldn't be fair to discuss the issue while talks were still ongoing.
Carter said there would also be further talks involving him, Brett and RPCC before the issue was brought back before councillors.
Campaigners had previously asked for more time to put together their business case.
RPCC's fight was today also supported by two Headingley Liberal Democrat councillors, Martin Hamilton and Jamie Matthews.
In a letter to executive board members, they said: "The council cannot support a scheme which would inevitably lead to more student flats in the area ... the last thing this community needs is more commercial premises which will adversely affect existing local businesses.
"We support RPCC's bid to take over the building and ask the council to transfer the building to the consortium for a reasonable period of time to allow them to demostrate that they can implement a scheme which clearly has so much community support."
Hyde Park residents noisily demonstrated outside the Civic Hall against the plans for student flats prior to today's meeting.
A famous Leeds playwright has lent his support to residents of the city who are campaigning to stop a former school from being turned into student flats.
The Royal Park Community Consortium (RPCC) said Alan Bennett had written in support of their fight to make the old school into a community centre.
Royal Park School in the Hyde Park area of Leeds has stood empty since 2004 and is in a state of disrepair.
A council report recommends that the building is sold to a developer.
Planners were due to review the report on Wednesday.
But a Leeds City Council spokesman said the paper had been withdrawn from the meeting and would be discussed at a later date.
The RPCC's plan for the building includes a community market, cafe, creche, craft workshops, studio space and a gym.
The council said it would consider three bids for the school - two from businesses wanting to turn the school into flats and one from the RPCC.
Heather Kennedy, of the RPCC, said one their members had received a letter from Mr Bennett saying he backed their fight to keep school for the community.
Mr Bennett was born in Armley in Leeds and describes walking around the Hyde Park and Headingley areas of the city as a boy in his autobiography, Untold Stories.
The protesters, complete with banners, whistles, pans and megaphone, spilled out from the pathway onto the roads outside Royal Park.
Community group the Royal Park Community Consortium has been campaigning to transform the building into a community hub, but council officers have recommended councillors approve the flats plan at Wednesday's executive board meeting.
Under the recommendations, there is the possibility part of the building could be for community use, but the proposal for student flats has angered local residents.
Campaigners say there is no need for more student flats in the area and are demanding the whole building is given over to the community.
Protester Jake England-Johns told the crowd the consortium had been in negotiations with big arts organisations to secure funding and that they were askign for a sic-month deferment of the decision by the council.
"It is time for the council to listen to what the people are telling them," he added.
Liberal Democrat Leeds North West MP Greg Mulholland attended the protest, as did Labour councillors Gerry Harper and John Illingworth.
There will be a further protest outside the Rose Bowl, near Leeds Civic Hall, at noon on Wednesday, just before the executive board meeting.
