A majority of the political parties on Belfast city council support some sort of change to the current policy on the flying of the union flag.
It currently flies from the city hall on 365 days of the year.
The UUP is opposed to any change, while the DUP wants no change at city hall, with the flag flown on designated days at other offices.
The Alliance party wants the union flag flown only on designated days, while the PUP prefers that it be flown on designated days and four Northern Ireland days.
The SDLP wants all flag flying suspended as an interim step to a resolution, while Sinn Féin prefers that either both the Irish tricolour and the union flag are flown or no flags at all.
The council is now to consult on a new draft policy to be contained within its Good Relations Strategy.
Sinn Féin north Belfast councillor Eoin O Broin said immediate action was needed on the issue.
"The issue of flags and the city council is of huge practical and symbolic importance," he said.
"As a place of work, as a place where citizens access services but also as a centre of civic life in the city, flying a Union Jack sends out the wrong sign, the impression that Belfast is still under unionist domination, that the city and council is still a unionist dominated council."
Mr O Broin said he was concerned that, despite the warning contained in the new report, there would be unnecessary delay before any change is implements.
"It has taken council two years to arrive at a position which everybody knew at the start, which was that there is no legal defence for the current policy, that the current policy conflicts with our own equality scheme and guidelines and that change has to happen," he said.
"The majority of parties want change, legal advice demands change and Sinn Féin is calling on the city council to take a decision on this issue as a matter of urgency."
Last night a council spokeswoman said the assessment was being carried out under the council's equality scheme and the consultation had been delayed over the summer months "in line with advice from the Equality Commission".
This consultation process has now begun and will end on December 29.
"The consultation process cannot be fast-tracked; it is an essential element of the Equality Impact Assessment and it is important that the Council hears a wide range of views on its current policy," she said.
"The timescales for all stages of the Equality Impact Assessment have been reported to and agreed by the full Council.
"A report on the outcome of the consultation process will be submitted to the Policy and Resources Committee in January."
However, UUP councillor Jim Rodgers insisted that while he would not advocate breaking the law "the union flag is the flag of Northern Ireland and should be flown 365 days of the year".
"There are quite a number of things that need to be discussed on this matter and will be addressed in due course," Mr Rodgers said.
