Ulster University's proposed Magee Postgraduate Medical School could face a further 12-month delay if a business case is not approved by the end of May 2019.
SDLP Councillor Sinead McLaughlin has called for the progression of the plans to avoid the longer delay.
She said: "I am concerned for the progress of Ulster University's Postgraduate Medical School as time is once again running out to get approval to proceed with the development of a medical school.
"The medical school has experienced delay after delay and if the business case does not move forward and receive approval by the end of May, the project will be delayed for a further twelve months. This means that students would not be able to commence their studies on the Magee Campus before October 2021, despite expectations that the first intake of students would take place this September 2019."
Mrs McLaughlin's comments came after she proposed the Council write to the Department for Economy to express the importance of the project.
However, concerns have been raised whether the absence of a sitting Executive would prevent the approval.
Cllr McLaughlin added: "I proposed at Council's Governance and Strategic Planning Committee that we write to the Permanent Secretary for the Department for the Economy to ask the Department to proceed with urgency to get approval for the medical school within the next four months. Time is of the essence and it is imperative that this project does not get knocked back into the long grass again.
"The SDLP have always been eager to see this project operational and we will continue to actively pursue this matter in the coming months."
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