Justice David Brown heard arguments from lawyers for the city and the protesters, the Canadian Broadcasting Corp. reported. He has extended his deadline for a ruling from Saturday morning to 9 a.m. Monday.
Brown said he has to balance the rights of the protesters with those of other residents of Toronto.
The Toronto protest began about a month ago. Protesters have been camping in St. James Park, next to the Anglican St. James Cathedral.
The city ordered the protesters to leave Tuesday. Lawyers for Occupy Toronto argue the eviction notice violates the Canadian Charter of Rights and Freedoms.
Officials at the cathedral have said they will not allow the church to become a shelter for protesters, The (Toronto) Globe and Mail reported.