Given previous controversy the standard one-month consultation period is likely to be extended to two months.
Deputy Mayor Tania McInnes also had reservations, saying the new proposal had "swung quite a way back the other way" [in favour of dogs].
"We need to be mindful that we have some precious flora and fauna. We have to make sure that not only people are protected but also our wildlife," she said.
Watchdogs spokeswoman Leonie Excel welcomed the council's U-turn on an earlier refusal to go back to the drawing board.
"I think it's great that it's going back for consultation, that's what we lobbied for in the first place."
While the new proposal was a "better, clearer document" she still believed it over-legislated dog owners.
In particular she was unhappy with an extension of the period in which dogs are excluded from some popular beaches between 9am and 6pm. In the current bylaw that period runs from December to the end of February, while the new version proposes extending that to the end of March.
The 2018 proposal also made all of Taupo Bay prohibited or on-leash, but she said at least part of the beach, where wildlife was not in danger, should be set aside for off-leash access.
"It goes without saying dogs shouldn't be allowed on beaches where dotterels are present and they shouldn't be allowed to wander uncontrolled on any beaches."
The group would now consult its members, other dog owners and conservation experts before drafting its submission, Excel said.
Conservation group Bay Bush Action has yet to study the proposed new bylaw in detail.
However, its members are likely to welcome proposals to ban dogs from the shorebird hotspots of Te Haumi, near Paihia, and the shore between Waitangi Bridge and the Treaty Grounds.
Consultation details have yet to be confirmed but it is likely to start on July 30 and run until September 24.
The new proposal retains the two-dog limit in urban areas of the current bylaw and the requirement that dogs be on a leash on public footpaths.