Cardiff council will discuss the plan for Waungron Road, Fairwater, which it said would cut bus travel times.
However, councillor Neil McEvoy said the plan was just about getting the Local Development Plan (LDP) approved.
Cabinet member Ramesh Patel said the council wanted an attractive viable public transport alternative.
A Liberal Deomcrat-led coalition spent £1m upgrading the site in 2008/09 but it was shut in 2014 by the current Labour council, which said it was not financially viable.
It said the interchange would be "vitally important" for a new public transport route across the city.
But Mr McEvoy claimed the council had kept its plans quiet.
"In politics whenever you don't want to do something you just say we can't afford it," said Mr McEvoy.
"But this is not a question of finance. This is just about getting the LDP approved."
In a statement, Mr Patel said the interchange would cut journey times by allowing people to travel between east and west Cardiff by bus without driving into the city centre.
The site is also next to Waungron Road railway station, which he said would allow more commuters to use both buses and trains.
The LDP is being examined by the Welsh government's planning inspector.
The council said any proposals for strategic transport sites across the city would go through the full planning process, with consultation.
A row has broken out over a bid to create a bus interchange on a closed recycling site, seven years after it had a £1m revamp.