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The move comes after Democrats, who were upset GOP leaders decided to fast-track the legislation, threatened to block taking up the bill. Democrats fear immediate consideration could disrupt the sensitive talks with Iran that face an important March 24 deadline.

Skeptical the administration can cut a tough deal with Iran, Republicans wanted to act quickly on the bill, which was introduced just last week by the Republican chairman and ranking Democrat of the Senate Foreign Relations Committee.

Republicans hoped to seize on momentum from Israeli Prime Minister Benjamin Netanyahu's powerful address to a joint meeting of Congress Tuesday, in which he urged the U.S. not to accept an agreement with Iran that would leave that country on track to build nuclear weapons in the near future.

The measure is opposed by the Obama administration, which said this week it would veto it. But Democrats, mindful of the White House's objections, have already felt divided on the issue and were critical of what they saw as partisan motives in the decision by Republican House Speaker John Boehner to invited Netanyahu to deliver an address to Congress arguing against the president's policy on Iran.

READ: Iran nuclear talks hit speed bumps

Senate Democratic aides said they believe that disrupting Democratic support for the bill was McConnell's aim all along to again drive a wedge between the two parties on Israel, and make it seem as though Democrats aren't as supportive of the Middle East nation and as tough on national security issues as Republicans.

Though McConnell denied speeding up consideration of the bill for partisan ends, both Republicans and Democrats on Capitol Hill hoping to move forward with the measure told CNN that the move to fast-track the bill had poisoned the well and undermined progress on getting Democrats to sign on.

New Jersey Democratic Sen. Robert Menendez, who sponsored the bill along with Tennessee Republican Sen. Bob Corker, penned a letter along Wednesday with 10 fellow Democratic supporters of the bill saying that they would oppose voting on it before March 24.

In a statement Thursday, Senate Democratic Leader Harry Reid said he was pleased McConnell had backed off his fast-track plan, which Reid charged was motivated by politics.

"Senator McConnell made the right decision by heeding calls from Democrats and Republicans to back off his transparently political move. Protecting Israel and the world from a nuclear-armed Iran is too important of an issue to use in partisan political games," Reid said.

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McConnell delays vote on Iran bill