Elor Azaria was sentenced by a military court on February 21 after an exceptional months-long trial that captivated Israel and highlighted deep divisions in public opinion.
He was due to begin his sentence on Sunday, but an appeals court accepted the defence's request to delay the sentence.
"The imprisonment will be postponed until the result of the appeal," appeals court judge Orly Markman said, adding that Azaria would be confined to base in the meantime.
Defence attorney Yoram Sheftel said he would be ready to begin the appeal within six weeks.
A number of rightwing ministers politicians, including Prime Minister Benjamin Netanyahu, called for him to be pardoned.
Military leaders have said the conviction is important for the institution's reputation.
The Palestinian government, the victim's family and the United Nations human rights office have criticised the sentence as too lenient.
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