According to various media reports, Google sent an email to consumers who pre-ordered the device - announced at Google I/O in June - informing them of the indefinite delay,
The company said that it was retooling the media player to make it "even better", and confirmed that pre-order customers would get their device free of charge.
New Nexus Q orders have now been suspended on Google Play.
In the email, reported in full by The Verge, Google also offers those who pre-ordered the Nexus Q after June one of the preview devices which were used by attendees at Google I/O.
"When we announced Nexus Q at Google I/O, we gave away devices to attendees for an early preview. The industrial design and hardware were met with great enthusiasm," said Google.
"We also heard initial feedback from users that they want Nexus Q to do even more than it does today. In response, we have decided to postpone the consumer launch of Nexus Q while we work on making it even better.
"To thank you for your early interest, we'd like to extend the Nexus Q preview to our pre-order customers and send you a free device. If you had other items in your order, your credit card will be charged for those items only."
Google did not indicate when the Nexus Q would ship, but merely told customers that it "will be on its way soon".
The move follows some mixed and negative reviews for the Nexus Q, with criticism of its limited functionality and high price tag, at $299, compared to other media players from Apple and Roku.
Delaying the device to improve the design is an admirable move from Google, but also a costly one, as it was reported that the Nexus Q sold out its allocated pre-orders within just hours of the debut.