Councillor Kay Cutts, Conservative leader of the council, had initially pressed forward with plans to introduce the new council structure, which could see the scrapping of district councils.
However, the proposals were met from opposition among most district councillors, including Kate Allsop, Mansfield Mayor, and Councillor Jason Zadrozny.
Now, Coun Cutts has announced plans to shelve the proposals while more time is given to working out how to reform local government in the county.
She says the council will now look at alternative options such as “harmonising local services” and potentially merging district councils.
She said: “Everyone knows I believe that the current system of Local Government is unsustainable. Our outline Business Case supports my view that there is a better way to plan and deliver services for local people who pay for them out of their taxes.
“However, I accept that my view is not universally supported.
“After meeting with district council leaders and chief executives and after much reflection, I have decided to withdraw the business case from Thursday’s County Council meeting.
“We all need more time to consider and discuss the potential options.
“I have listened to all the voices on my own and opposition benches and decided to take more time to reflect.
“Nonetheless there is no simple solution to the significant financial challenges we face and savings will still have to be made to close the funding gap.
“We will need to consider radical solutions and not just look at back office functions.
“I believe in the interests of Nottinghamshire residents councils should consider options such as harmonising bin collection and considering whether councils could merge together.
“Every effort will be made to protect those who rely on Council services but all other spending will have to be seriously considered in both the shorter and longer term.
“I know I can rely on colleagues from all sides to help find the way through the current financial situation, which is not of this council’s making, for the people we serve.”