The ONS will revise its figures
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Derby has lost out on £4m in national funding, because the latest census has underestimated how many people live in the city.
The 2001 census claimed 221,700 people lived in Derby - but the council says this is 14,000 short.
The Office of National Statistics has since revised that slightly, but the council says the figure is still too low.
The shortfall has resulted in £4m million less in Government grants to the council.
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There is, at last, light at the end of the tunnel
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Derby's figures - along with nine other local authorities in the UK - will be assessed again.
The council hopes another revision will make up the funding shortfall.
Council Leader Maurice Burgess said: "This is excellent news.
"The ONS has yet to concede that there are errors in the population estimates for Derby, but they accept that they need to conduct an in-depth review of the results.
"There is, at last, light at the end of the tunnel and it gives us a proper chance to prove our case."