Titled Grimsby, Sacha's new film follows a spy (played by Mark Strong) who is forced to go on the run with his football hooligan brother, played by Sacha himself.
Sacha Baron Cohen will play a football hooligan in his new film Grimsby
Penelope Cruz is also thought to star.
Rather than filming in the northern town, production is instead taking place in Essex, but one resident who travelled to Essex to view the set was not happy. Speaking to the Grimsby Telegraph, the businessman said: "They made Grimsby out to be a terrible and dirty place to live. It's not on."
Sacha Baron Cohen as Borat in 2007
He claimed that extras were walking around with dogs on chains and cans of lager in their hands as film crews threw bags of litter on streets. Houses were reportedly decorated with grubby England flags and gardens made to look rundown.
The businessman added: "I'm not pleased this is the way the world will get their first and maybe only look at Grimsby. I've lived here all my life. It's an up-and-coming area.
"It has a lot going for it and it's disappointing to see what they have done. They should tell people that it's a spoof and this is not the real Grimsby."
Sacha Baron Cohen as Ali G in 2003
Sacha, who came to fame for his portrayal of Ali G, a member of the "West Staines Massif", will be used to the negative publicity.
Staines rebranded itself in 2012 as Staines-On-Thames following the years-long association with spoof gang member Ali G, while the country of Kazakhstan was ridiculed in his 2006 film Borat, provoking the ambassador to Britain to write a letter of complaint.