Heritage NZ last year approved an archaeological authority consent for the project, where MMS GP Limited hopes to develop a large-scale retirement village near Ōpihi Whanaunga kore.
The urupā, which was still used today, was the resting place for many significant Ngāti Awa and Mataatua ancestors.
Hudson said she was glad there would be some proper engagement.
“It was the pressure that came on during last week - not only from the online presence but also on the ground and the grassroots - that people who had been fighting for this generation, the pressure that was mounting, I guess encourage the hand to return to this option that was always on the table, we were always able to have these discussions directly,” said Hudson.
In a statement, Heritage NZ also welcomed the adjournment.
“We agreed on the basis that all other parties wanted the adjournment to explore possible options for resolution,” it said.
Whakatāne District Council said in a statement that the dispute had shown the necessity for proper engagement.
“We know that this development has again shown the necessity for council to appropriately respond to the protection of cultural and spiritual values, whilst also managing the responsibilities of housing development.
“This is challenging, and we know we have got a lot of work to do to ensure we get this balance right for the benefit of all in the district.”