The decision came after Mr Pawar failed to garner enough support among nomination committee members to take the post next year.
Mr Pawar was pitted against England and Wales Cricket Board (ECB)Chairman David Morgan for the post but both failed to get required number of votes and as committee was deadlocked it decided not to make a recommendation to the Executive Board.
The deadlock helped incumbent Percy Sonn to get his tenure extended by another year, and he will be now at the helm of affair of the ICC till June 2009.
By staying in office for a third year, Sonn has followed in the footsteps of former ICC chiefs Jagmohan Dalmiya, Malcolm Gray and Ehsan Mani.
The Board received a report from the Nominations Committee following the latter's meeting to consider the merits of the two prospective candidates for the role, the ICC said in a release after its two-day Board meeting.
As there was no clear winner, the Board decided to refer the matter back to the Governance Review Committee for further discussion on the appropriate way to proceed in the selection process.
The Governance Review Committee is made up of Creagh O'Connor (Chairman), Tunku Imran and Peter Chingoka.
''The fact the Nominations Committee was unable to put forward a single candidate for consideration by the annual conference is unfortunate,'' he said.
''However, the positive aspect of the situation is that it illustrates that both Mr Pawar and Mr Morgan had strong support to take over as ICC President and that is a fortunate position for any organisation to find itself.''
The Nominations Committee consisted of A C Muthiah (Chairman, representing India and Sri Lanka), Bob Merriman (Australia and New Zealand), Mueen Afzal (Bangladesh and Pakistan), Stephen Camacho (West Indies and England), John Blair (South Africa and Zimbabwe) and Imran Khwaja (Associates and Affiliates).