The 68,000m2 mixed-use scheme, advanced by Hammerson and Morley, would be built next to the existing Queensgate Centre.
The £470 million development aims to create 50 shops and five flagship stores that will include a 15,000m2 Marks & Spencer. Designed by Benoy, the proposals build on the city's historic street patterns with pedestrianised squares along with landmark buildings.
A "sky-plane" glass roof will provide a cover for a square linking to the 1980s Queensgate Centre, which is to be upgraded to integrate with the scheme.
Restaurants, a cinema, a hotel and more than 100 apartments are planned, as well as 3,300 parking spaces and a bus interchange.
North Westgate is one of the key developments in Peterborough's city centre masterplan, which is expected to attract more than £1 billion of investment over the next 20 years.
Hammerson development director Michael McGuinness said the proposals complement the public realm strategy and are key to the city's growth and revitalisation.
"North Westgate will be a major injection into Peterborough's economy and transform its standing in the UK hierarchy of leading retail destinations," he said.
Subject to planning permission being granted, construction could begin in 2009 with completion scheduled for 2013.