North Sheffield MP Angela Smith has written to city leaders seeking help to find alternative uses for the Oughtibridge Paper Mill site once it closes.
Swedish owner SCA has announced plans to shut the historic mill in 2015, with the loss of 161 jobs.
A 45-day consultation period has been launched.
Mrs Smith, Labour MP for Penistone and Stocksbridge, said: “I am writing to both Sheffield Council and Sheffield City Region leaders, as I think it is imperative that every effort should be made to salvage whatever we can from this difficult situation.”
The MP has called for help with redeployment for affected staff and to find alternative uses for the site.
Oughtibridge residents are concerned it may be used for housing – which they say would put strain on services.
Paper making ceased at the mill after the 2007 floods and it currently processes paper from elsewhere into products.