The Ballymun Regeneration Board has given an ultimatum to National Assets Management Agency to come with plans for a town centre.
In a letter to the agency it states that unless there is a realistic proposal for a town centre made within 30 days the board will proceed to develop other sites.
Local Fianna Fáil councillor Paul McAuliffe welcomed the move, saying: “The last thing we want to see is the existing site remaining undeveloped while new shops are built next door.
"But equally the people of Ballymun can't wait around forever for private owners and their funders to make up their minds.”
In the letter, managing director of the regeneration board Dick Brady states that the town centre is a key aim of the regeneration project.
But he said the wind-down of the developer Treasury Holdings and the movement of their assets into NAMA had raised serious concerns.
A spokesperson for NAMA said the agency is involved in discussions with the regeneration board, the receiver PWC - which has primary responsibility for the project - and the Dublin City Council, which has a freehold interest in the site.
The agency spokesperson said it will be responding to the letter.
NAMA is understood to have previously funded the €13m expansion of the Charlestown Shopping Centre in North Dublin, which is situated on off the M50 near Finglas.