The Government appears to have softened its stance on Labour MP Sue Moroney's members bill to extend paid parental leave to six months.
Ms Moroney said National had approached Labour "after the weight of public opinion convinced them to rethink its threat of using a financial veto to scupper the bill".
The Government Administration select committee has now delayed its report on the bill until February 28.
"I hope National MPs will use the summer break with their families to reflect on how Labour's proposal to extend parental support will help mums and dads bond with their babies in the crucial early months," Ms Moroney said.
Finance Minister Bill English said National hadn't changed its position on the bill but now understood it "may be worth looking at".