"Germany asked for a postponement, and we have accepted their request," a British spokeswoman told Reuters, adding Britain still hoped to reach a deal before its presidency runs out at the end of this year.

The incoming government of Germany, which has Europe's biggest chemicals industry, with companies like BASF, told its EU partners it would not have enough time to decide on the bill under the original timetable.

REACH, which the European Commission estimates will cost the chemical industry 2.3 billion euros over 11 years, was designed to protect people from the adverse effects of chemicals found in a wide range of products from paint to electronics.

Chemical makers would have to register the properties of substances with a central EU database. Those of highest concern, such as carcinogens, would require authorisation to be used.

Environmentalists fear that a delay could lead to a further watering down of the text to meet industry demands.

The spokeswoman said Britain could call another meeting of the council of competitiveness ministers to agree a deal before the end of December, but no decision on a date had been made.

"We have today informed (EU ambassadors) that we propose a substantial policy debate on REACH at the November competitiveness council, with a view to reaching an agreement on this dossier as soon as possible thereafter," she said.

DRIFTING TOWARD A DEAL

A draft version of REACH is scheduled to be debated and voted on next week in the European Parliament.

Both lawmakers and member states will have to agree on a common position on the bill before it can become law.

The debate comes as Europe tries to boost its sluggish economies without jeopardising social and environmental standards.

"We think it's an unnecessary delay, and we don't think the UK presidency should have caved in to the German demands," said Justin Wilkes, programme officer at environmental group WWF.

"(German chancellor-elect) Angela Merkel wants to weaken REACH as much as possible in favour of the German chemicals industry," Greenpeace official Nadia Haiama said in a statement.

The spokeswoman for Britain stressed there was momentum to get a deal soon on REACH, which has been in the works for years.

Green lawmakers want a deal under the British EU presidency to avoid the file being handed to Austria, which takes over in January, and which they consider as less environmentally minded.

The plan for a vote in Parliament has so far not been derailed, but it is likely to be complicated.

Hundreds of amendments are up for a vote, though the major political groups have agreed to a compromise on reducing the number of substances in a low-tonnage category of chemicals that would require tests for registration.

That category applies to chemicals that are produced or imported into the EU in amounts of between one and 10 tonnes a year, estimated to be between 17,500 and 20,000 substances.

The Green party has produced an alternative to the compromise agreed by conservatives, socialists and liberals.

The European Commission, which authored the original version of the bill, is still thrashing out how it will respond to the Parliament's amendments. An internal document seen by Reuters indicated it was considering accepting the proposals on low-volume chemicals either fully or "in principle".