The process of deciding which Lancashire council areas will merge with each other is to be re-run.
The government confirmed the news in the Commons on Thursday lunchtime.
Ministers announced in July that four new standalone unitary authorities would be created under local government reorganisation (LGR) replacing the existing15 councils.
However, last month, this was put on pause as the government sought legal advice.
Lancashire leaders were told on a call with local government minister Jim McMahon this morning that the government had withdrawn its chosen option four councils, which included Pennine Lancashire made up of Blackburn with Darwen, Burnley, Hyndburn, Pendle and Rossendale.
Ministers will now reassess all five suggestions put forward by Lancashire’s existing councils for the number and geographical shape of the organisations that should replace them as part of the government-ordered changes.
Specifically, the government will look again at the financial modelling and travel-to-work patterns that underpinned the suggestions.
Shadow elections for the new authorities are now set to take place in May 2028, a year later than previously planned, with the new councils taking over in 2029.
Mr McMahon told the Commons Lancashire would know the outcome by February or March at the latest.
He said: “I want to be absolutely clear that this is not a reflection on the work underpinning those proposals.
“To be clear, all options and proposals in these areas will remain under consideration, and I’ll approach all those with an open mind.
"As such, it should be not assumed that the same proposal will be automatically selected.
"It’s important to allow the process to run its course and to allow full and proper consideration.”
In the next few weeks £1.8 million in 'transition funding' will be released to Lancashire. The 15 councils have collectively set aside £30m for the process of LGR.
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The Conservatives' shadow local government secretary Katie Lam called the process a "farce".
Lancashire County Council chief executive Mark Wynn, the senior responsible officer for LGR in Lancashire, said: “It’s helpful to now have confirmation from Government of the timetable for its review of LGR in Lancashire.
“Since the review was announced, the Programme Delivery Office and councils across Lancashire have reviewed implementation plans to identify the activity that can continue while the review is undertaken.
“This includes work that is not dependent on a particular future council structure or implementation timetable, helping to ensure that progress continues while avoiding unnecessary expenditure or abortive work.
“By focusing on these priorities, Lancashire will remain in a strong position to respond quickly and effectively when the outcome of the government’s review is known.
“We will continue to work collaboratively with councils, elected members, staff and partners to ensure that we are well prepared for the next stage of the programme.”
Next year's council elections in the existing boroughs will go ahead as planned.
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