The state government appears to be backing away from key aspects of a bill to overhaul elections for the City of Sydney council and is reconsidering a controversial proposal to give businesses two votes.

Parliament was set to debate the bill on Wednesday, but it was pulled from the agenda.

Allied: Alex Greenwich with City of Sydney lord mayor Clover Moore. Credit:James Alcock

Last-minute changes to several of its key measures are now being considered.

"There are a range of amendments being considered," said MP Gareth Ward, who chaired the parliamentary committee that first recommended the changes.