The GMB Union says Uber has been granted a six month extension to its licence in Brighton.
Discussions were held by the council on Tuesday, behind closed doors.
It is to allow the council to monitor Transport for London's decision about the company's operation in the capital.
The council will consider whether information arising from the case will have direct implications for its operation in Brighton.
It also allows more time for negotiations with Uber about a number of proposed conditions.
Uber allows users to book a journey and pay for it through a mobile app.
The company argues it has brought cheaper fares and faster response times for passengers.
But local taxi drivers in Brighton say it is unfair competition.
Under national law, licensed drivers can operate anywhere in the country, allowing drivers from elsewhere to work in the city.
All Brighton & Hove private hire and Hackney Carriage drivers operate under the same licences and the same guidelines as Uber drivers.
They are also bound by the same background checks.