The U-turn could see branches staying open despite an announcement in June that all 164 branches would close in November.
The decision to close C&G came as part of an overhaul of the mortgage businesses.
At the time of the announcement C&G customers were told they could manage their accounts through Lloyds TSB branches, but they will now be able to continue to use the C&G network as normal.
C&G staff have all been notified of the review.
The group, which is 43% owned by the taxpayer, posted a loss of £4bn earlier this month, pushed into the red after the acquisition of HBOS in January led to an impairment charge of £13.4bn.
The acquisition also led to a review of the banking group’s media planning and buying accounts in April.