Vodafone and the Indian government have yet to agree on a neutral third arbitrator to help resolve their long running and high-stakes tax dispute, further delaying the process.
The company and government officials have mutually agreed to extend the deadline for commencing arbitration by another month as a result.
But a source close to the discussions told India's Economic Times that this is not a sign of continuing hostility between the parties.
It instead reflects a more conciliatory relationship between Vodafone and the new government, as opposed to the previous government which started the dispute, the source said.
The government has chosen a former chief justice as its arbitrator while Vodafone has named a Canadian trial lawyer. But the third choice has been a sticking point.
Vodafone has reserved the right to take the case to international arbitration if the negotiations fail.
Indian tax officials are demanding a bill that has risen to over 200 billion rupees ($3.28 billion) arising from Vodafone's acquisition of its Indian unit in 2007.
The long dispute has involved a series of twists, including the former government retroactively changing Indian tax law to cover the transaction.