Norwich councillors are understood to be in talks about buying Anglia Square after it went back on the market for £8.5 million.
The authority has not disclosed any details about negotiations, but Labour’s parliamentary candidate for Norwich South Clive Lewis said he was supportive of the bid.
He said it could kick-start the development of hundreds of homes at the site after a series of setbacks in its rejuvenation, which have been going back two decades.
Mr Lewis said: "I'm backing the city council's attempts to raise funds to buy the Anglia Square site.
"If they're successful, that could get the project moving again and if they own the site, it could possibly open up new and improved opportunities for what can be done with the site next time.
"In particular, I'd like a higher proportion of social housing and lower carbon emissions."
Anglia Square has been put back on the market after developers Weston Homes suddenly scrapped a £300m revamp project of the site earlier this year.
At the time Norwich City Council leader Mike Stonard revealed that he was in talks with government officials over the possibility of obtaining a grant to cover the cost of purchasing the site.
He said: "It would be advantageous to future developments if the site is in public ownership.
"We're actively exploring options and talking to the government about this."
Mr Stonard has been contacted for further details in light of Clive Lewis' comments but he would not elaborate further.
However, a spokeswoman for Norwich City Council confirmed "discussions with Columbia Threadneedle," which owns the 11.40acre site, are ongoing around the square's future.
They added this "involves continuing to explore a range of possibilities aimed at finding a workable solution that would see the successful comprehensive redevelopment of one of the most deprived parts of our city".
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