According to a Department for Education (DfE) documents, applications from all seven pupil referral units in Cornwall had been approved as of 1 July, although funding agreements had not been put in place.
But speaking to CYP Now, Neil Burden, lead member for children's services at the council, said the idea has been shelved in favour of exploring other options.
“At the moment it has been put on hold,” he said. “The DfE was very keen, but we would rather be the last to convert and get it right than the first and get it wrong."
There are anywhere between 180 and 320 children in Cornwall each year who require some form of alternative provision.
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