Contractors will begin to demolish the nightclub, in Northminster, on Monday (November 29) and will clear the site in the first stage of the redevelopment.
The work will not involve any road closures but pedestrians are warned they may find some temporary diversions around the pavements in front of the site.
The nightclub, which closed last year, was to be replaced by a three storey and seven storey accommodations blocks providing 56 apartments, rooms for up to 77 students, plus restaurants and retail outlets and 36 basement car parking spaces.
But the proposed development was prepared before Peterborough City Council and the Peterborough Investment Partnership unveiled their own residential-led plans for the market and former multi-storey car park site and which have just secured the go ahead.
It has mneant a return to the drawing board for site owners Glenrowan Homes.
A spokesperson said: “The developers will be submitting a revised planning application for the Solstice site that responds to these changes, remains commercially viable, and supports the wider regeneration of the Northminster area and the council’s evolving vision for the city centre.
“This updated application will be submitted shortly.”