Scottish Ministers will now decide the fate of the Category B listed Art Deco building after a review commissioned by Historic Scotland stated that the demolition of the building was "not justified".
Edinburgh City Council had passed a proposal submitted by the current owner of the site, Duddingston House Properties, to tear down the building which has been vacant since its closure in 2003.
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Michael Russell, Culture Minister, in a statement said: "The application concerning the Odeon on Clerk Street has attracted a lot of attention, from both those who would like to see its auditorium retained and those who believe it should be adapted for a new use.
"The last thing I would want to see is for this process to go on indefinitely, but this is a complex case and it is important that all aspects of the application are fully and independently considered to determine the best way forward. It is for that reason I have called in this application for decision by Scottish Ministers.
"A wide range of factors will have to be taken into account, including the current economic climate, but I am sure we can resolve the matter as quickly as possible, without compromising the scrutiny that these applications deserve."
(GK/JM)
