Civic leaders backed Cowley Road Carnival bosses after they switched the date from July to September.
The east Oxford celebration was due to go ahead on Sunday, July 7 - with the event filling the street for the first time in five years.
Now organisers have postponed the celebrations until Sunday, September 1 as they seek more time to organise the big day which in the past has attracted up to 50,000 people.
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"A September carnival is better than no carnival at all," said Anna Railton, the city council's deputy leader and cabinet member for a Zero Carbon Oxford.
"Everyone wants to see the carnival back - it's a genuine shame that it has not gone ahead in recent years.
The carnival was cancelled at short notice last year due to a funding shortfall of £20,000, and has not been staged in the street since 2019.
Lord Mayor Mike Rowley said: "The most important thing is that it goes ahead so if the organisers need more time let's give them more time.
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"It's a great event for east Oxford and the whole of Oxford - I hope everyone will get behind it."
She added: "It is a break with tradition but Cowley Road Works are confident it will work.
"The extra time will mean we can make sure we get it absolutely right - make sure it flows properly."
Our Nature Our Future is the theme of this year's carnival procession.
Artistic director Pax Nindi said: "This year features eco-friendly floats in the procession and use of recycled materials for costume-making, encouraging sustainability.
The carnival will be launched with an event on Sunday, July 7, followed by another community event on August 4.
Festival organisers said: "The festivities commence with an array of events, including a media launch, a carnival dining experience, and a series of lively after parties.
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"This launch event will set the tone for a summer filled with music, dance, and community spirit, celebrating the rich cultural tapestry of Cowley Road and its surroundings."
Shops and restaurants can benefit from a boost in trade on the big day.
Turkish restaurant Antep Kitchen is one of the businesses now planning for September 1.
A member of staff said: "People really enjoy the carnival - we are looking forward to it."
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