The committee discussed the issued after a Saskatoon man complained last week.
Atheist Ashu Solo said the greeting violates the separation of state and religion.
He threatened to file a human rights complaint if the messages weren't removed.
City councillor Darren Hill says nothing will change — at least for this holiday season.
One option that was discussed was posting greetings from other faiths as well.
"We are a multi-cultural society, multi-faith, and we need to embrace that," Hill said Monday. "We don't need to single out individual ones and say which is appropriate and which isn't."
He said he is confident "Merry Christmas" will remain on buses for years to come.
"Merry Christmas means different things to different people. To some it's about the birth of Christ. To some it's about Santa Claus and presents. To some it's simply about getting together with family and friends.
"It's not up to this council to determine the specific meaning of Christmas and tell the citizens of Saskatoon what it is."
The issue has been referred to the city's cultural diversity and race relations committee.
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