As Nursery World reported last week, the local authority had interpreted the Childcare Act as a duty to manage rather than to provide existing and planned childcare services.
The proposal prompted a public outcry, with the trade union Unison backing childcare staff.
Five community nurseries, two playgroups and a Sure Start nursery had been at risk.
The council said the move was part of the first phase of its childcare sufficiency assessment and it was working to complete this by March this year.
It acknowledged that the Government had clarified that the deadline to complete the whole process is March 2008.
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