The city council has terminated the lease of Market News newsagents, located next to the City Market, and taken possession of the unit with immediate effect.
This follows the seizure of 10,000 illegal and counterfeit cigarettes on Tuesday 14 November by Peterborough and Cambridgeshire Trading Standards.
On taking possession of the unit a further 4,500 cigarettes and over four kilograms of tobacco were seized that were counterfeit.
Peter Gell, head of regulatory services, said: “To find that more illegal tobacco products were found at the property so soon after the initial seizure shows that the tenant paid no regard to laws which protect the safety of consumers and legitimate traders.
“The council has acted quickly to protect the public by preventing the tenant from continuing to trade in counterfeit cigarettes. We would encourage anyone with information about the illegal sale of tobacco to email email@example.com or call 01733 747474."