The plea comes from Peterborough MP Paul Bristow who says he is concerned about the time taken for the Government to release the cash that would enable the development to take place.
Under plans devised by the Peterborough Investment Partnership (PIP) - a joint venture between Peterborough City Council and investment specialists IAGH3 - it is intended to build 335 homes at Northminster.
The market, which currently sits on the site, would be relocated.
The development would include commercial space for food and drink outlets and a revamp of Laxton Square.
The homes will be funded by Government money channelled through the Cambridgeshire and Peterborough Combined Authority as part of its £100 million affordable housing programme.
But concerned at what it says is a lack of progress and value for money, the Government has announced it is withholding £45 million of the £100 million.
Any decisions to release further funds will be made by a minister on a case by case basis.
But in a letter to Luke Hall MP, minister for Housing, Communities and Local Government, Mr Bristow states: “I am concerned about the proposed Northminster regeneration plan.
“This historic part of Peterborough is in urgent need of regeneration and investment.
“Regardless of any concerns about the combined authority, I hope you will now be able to release this funding for Peterborough. I would be very happy to meet to discuss this proposal.
He adds: “I have met with the leader of Peterborough City Council, Councillor Wayne Fitzgerald, on this issue and he shares my impatience to get the ball rolling with this proposal.
“The development provides the opportunity to deliver affordable housing on the site, targeted at young professionals, keyworkers, and low-income earners.
“My constituents deserve this housing opportunity, which the Government’s funding can make possible.
“The Cambridgeshire and Peterborough Combined Authority has requested £14 million to make it happen.
“The redevelopment of Northminster is being brought forward by Peterborough City Council. The Leader of the Council has also committed to securing a new future and venue for the City Market.”