Nick Clegg has warned David Cameron that it would be "unwise" to create "a prolonged period of uncertainty" over Britain's relationship with Europe.
Mr Clegg said legislation was already in place for a referendum if more powers were transferred to Brussels.
Any additional uncertainty could have a "chilling effect" on jobs, he said.
Downing Street rejected the warning, saying that a debate on the future of the EU was already under way and it was "in the national interest to take the lead".
No 10 added that the PM would brief Conservative cabinet ministers on Wednesday about his speech and would be speaking to fellow EU leaders.
The prime minister has faced pressure to hold a referendum on Europe and has been criticised by some in his own party for not doing more to get powers back from the EU to the UK.
Read more: BBC News - Nick Clegg warning to PM over EU referendum
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