As a result, quotas for the 2010-2011 quota year will be allocated according to existing legislation, Bjarnason said.
The news is likely to be welcome by Iceland's fisheries, which have warned that the planned quota recall would badly hit their finances.
Their claims have been backed by Islandsbanki, which recently said the quota recall could engender more bankruptcies and also affect the banking sector.
The government originally intented to start recalling quotas at the start of the 2010-2011 quota year, which kicks off on September 1.
Now,
