Planners had recommended that permission be granted for a major project at the Victoria Hall when it came up before committee on Wednesday.
But an 11th hour technicality over legal ownership of the land stopped councillors from making a decision.
Instead the application, from Gioco Leisure (Edinburgh) Ltd will be debated either at the end of July or in September.
Speaking after the meeting Provost Tom Kerr said that members took legal advice, before continuing the item.
''You've got to take legal advice when it is given, to us, it would be foolish in the extreme for us to go contrary to legal advice.''
Boarded up since 1991, the rear of the High Street building was partly demolished last year.
If the plans go ahead, the historic facade will be removed, and partly rebuilt in a fresh frontage with an archway entrance for pedestrians, while the building will be re-developed for leisure use and a restaurant. The exact use, and a start date for the £2 million plus development, are not yet known.
The application was due up before councillors as it had a number of objections.
Some people welcomed the re-development of a neglected building, while other near neighbours were unhappy over anticipated parking or noise problems. However, planners agreed that there was sufficient parking.
Jon Newey, architect behind the plans, said: ''We've been very pleased with the positive comments people have made.
''There are stacks of empty parking spaces in Linlithgow after 5pm, when a leisure use building will be most used.
''The planners and the roads department have agreed with us on that.''
Find out more about local planning applications here
www.westlothian.gov.ukVisit the Victoria Hall architect here
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