In a statement, a spokesperson for the trust said bosses had “agreed to review the planned closure while further work is undertaken”.
“We are committed to ensuring that local people have the opportunity to understand the proposals, share their views and help shape future plans,” they said.
“Our priority remains providing safe, sustainable and high-quality care for local people.”
The ICB previously said shutting the unit would allow patients to return home or move into care settings sooner, with more support provided in the community.
But the proposals faced criticism with a union warning the closure would affect 50 staff and lead to elderly patients being transferred to Scarborough.
Earlier this month, East Riding of Yorkshire Council called for the plans to be paused amid concerns patients could be left without adequate support.
At the time, Dr Ed Smith, from the trust, said patients were “generally better off [being] managed in their own homes” and savings from the closure would be “reinvested in community services”.