At the meeting, cabinet members will be asked for approval to sell the Railway Goods Shed and work with developer, Farholt Goods Shed Limited, to transform the disused venue.
Councillor Nick Thulbourn, Cabinet Member for Growth and Regeneration said: “We’re excited to put forward our proposals for The Goods Shed.
“The site is a fantastic opportunity to transform a derelict building into a thriving destination for people to enjoy in a part of the city that’s seen a major amount of investment.
“If agreed, these exciting plans will mean people will be able to enjoy food and drink from a host of unique and independent street food vendors in one location, in a large communal space.
“Our vision is to create a unique and exciting destination for people to enjoy.”
The proposals also include incubator space for small local hospitality businesses.
The Goods Shed, which was part of the former Peterborough East railway station, is one of eight projects to receive money from the city’s £22.9m Government Towns Fund programme.
One of Peterborough City Council offices and a Government Hub are also located next to the Goods Shed site, a location that will also benefit from a new pedestrian bridge over the River Nene, connecting Fletton Quays and The Embankment to the city centre and the new university.