The car park will be located on the site of the old Northminster Car Park near the Market.
The old multi-storey car park was demolished earlier this year, and in its place a temporary short stay car park is due to open in late November, providing space for over 100 vehicles, including disabled parking bays.
The decision to open the car park comes after the council moved to close two other city centre car parks (Regional Pool and Wirrina) as progress on the new university site gathers pace.
The council has previously announced exciting plans to regenerate the Northminster site and is in the process of transferring the land to the Peterborough Investment Partnership (PIP), with a planning application expected to be submitted early next year.
Councillor John Holdich, leader of Peterborough City Council, said: “We’ve always felt that opening a temporary car park at Northminster would be the right thing to do, given the closure of the Regional Pool and Wirrina car parks.
“In these difficult times, it is more important than ever to help our city centre businesses by ensuring that customers have sufficient car parking spaces. By opening now we are also giving businesses and shoppers a helping hand ahead of the busy Christmas period.
“The long term future for Northminster is still to be decided, but we’re confident that this short term option is a welcome solution. The city centre is fairing well despite Covid-19 and has already bounced back to 97 per cent of its footfall (end of August 2020) – well above the national average. We will continue to work to ensure that it is a thriving, attractive place.”