Google and the Association of American Publishers have failed to meet the deadline to renegotiate the controversial $125m Google Books settlement.
The settlement was reached after authors and publishers sued Google over copyright violations, but it was withdrawn in response to concerns that it would give Google too much influence.
In September, the US Department of Justice urged the parties to modify the settlement because of concerns that it violated competition laws.
Judge Denny Chin of the US District Court for the Southern District of New York had been scheduled to oversee a hearing on 7 October on whether to approve the deal reached in 2008.
He said it did not make sense to go ahead with the hearing because it appears that the current settlement agreement will be the operative one.
The parties have now been given until 13 November to come up with a settlement that is acceptable to the Department of Justice and all other stakeholders concerned about copyright violations.
The deal set up to allow Google to sell digital versions of out-of-print, copyrighted books has raised US and European concerns about how it will affect international copyright law.