The closure had been set for Friday. Protesters have opposed the closure.
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"We're postponing the closure because conversations with the group are ongoing and I plan to meet with several camp representatives next week," Mayor Jim Kenney said in a statement. "A mutual resolution has always been our preferred outcome."
The city said the additional time also allows outreach teams to bring support to those in need.
Some protesters told Action News on Wednesday they were ready to be arrested if it came to that.
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"Everybody feels really good about themselves that they are standing up and fighting," protest leader Jennifer Bennetch said.
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Philly officials delay plan to close protest camp along Ben Franklin Parkway
Mayor Kenney said the use of police officers to remove people from the camp is a last resort and "something he does not come to fruition."
"This demonstration activity casts an important light on the racial inequities in our society that impact homelessness and frankly have informed inadequate solutions," Kenney said.