The Lord Mayor's Parade in May is set to follow last year's hugely successful trail through York city centre - after the council backed down on plans to ban the route.
But the row over one of the city's most popular annual events has left organisers predicting it will be only half the size it was last year.
The controversy began when councillors ruled that the floats should stay well away from the pedestrianised areas of the city centre, even though last year's parade through the centre was the most successful ever. Councillors said last year was an exception, partly because of the Layerthorpe Bridge works, and said the route would have to revert to the inner ring road.
But after a storm of protest, including concerns from police about safety on the ring road, council officers recommended that the parade could go through the city centre.
Oganisers won a further victory when officers backed down on a second point. Hailing York's strict policy on pedestrian priority, officers wanted the festivities to be over by noon, before Sunday shoppers descended on city centre thoroughfares.
But Coun Ann Reid said: "I know it is a balancing act, but you could say the least disruptive time was midnight. I feel we should be holding it at a time when it will make the optimum amount of money for charities."
Last night, members of the council's planning and transport committee agreed, and decided to allow the parade to go on until 12.30pm on Sunday, May 24. It will be put together by York and Minster Lions clubs after last year's organisers, the York Junior Chamber volunteers, pulled out in disgust at the council's handling of the event.
Coun Martin Brumby, chairman of last night's meeting, agreed that the council had made mistakes. "It is a shame but, hopefully, we have gone some way to coming to a reasonable compromise that will satisfy most people," he said.
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