The draft Law on Food Safety was removed from the agenda of a bi-monthly session of China's top legislature which started Monday.
It underwent three readings by the National People's Congress (NPC) Standing Committee and was expected to be debated again by lawmakers this month.
Sources with the NPC Standing Committee said the State Council suggested the postponement as it was further evaluating China's food safety monitoring system and practices.
The draft will be debated by lawmakers when they convene again in February, according to the NPC Standing Committee.
The draft Law on Food Safety has been revised several times. The most recent changes were made following the tainted dairy scandal, in which at least six babies were killed and 290,000 others sickened.
Melamine, often used in the manufacturing of plastics, was added to substandard or diluted milk to make protein levels appear higher.