There was never any suggestion that the archbishop was involved in the scandal or in covering it up. But he was a senior figure in the Church which was subject to an ongoing process.
Britain's first black archbishop was held back from being given a life peerage because officials wanted to make sure he was not criticized in an abuse inquiry.
Former Archbishop of York Dr John Sentamu was originally snubbed in a list of 36 new members this summer, the Daily Mail has reported.
Politicians had criticized the initial snub to Dr Sentamu.
It will allow Dr Sentamu to continue sitting in the House of Lords following his retirement in June.
A government source said the honour for the respected clergyman was delayed by the House of Lords Appointments Commission (Holac), which vets nominations.
It held back approval while the Church of England was being examined by the Independent Inquiry into Child Sexual Abuse, the UK based newspaper added.
According to Daily Mail, by Saturday it was reported Dr Sentamu, 71, would be granted a peerage imminently.
The source said: "There was never any suggestion that the archbishop was involved in the scandal or in covering it up. But he was a senior figure in the Church which was subject to an ongoing process. That is why there has been a delay."
Peerage is the system of giving people titles like ‘Lord or the Duchess of whatever.'
Downing Street, the administrative seat of the UK government had apparently always intended to ennoble the former archbishop.
A source added: "Everyone recognizes his great contribution, and the peerage was never in doubt."
Stephen Lowe, the former Bishop of Hulme, told Times Radio Dr Sentamu was a 'remarkable man'.
He added: 'He has never been afraid to speak out against racism, against poverty, against injustice.'