Sheffield City Council have refused permission for Shiregreen Club to be demolished after a petition to save the venue attracted 900 signatures - but have warned locals that they need to come up with a long-term viability plan to guarantee its future.
It closed in 2018 and the site has been the subject of interest from housing developers.
Secret history of the Barnsley model village built to impress royalty is revealedYet a local councillor has warned that it cannot remain out of use indefinitely and called for volunteers to take it on.
“This is a stay of execution but I’m just pleased it gives the community time to find a solution," said Cllr Peter Price, who has held ward surgeries at the club since 1972.
“There are no real grounds for this refusal in the long term so I would love for some members of the community to help take it on.
“Ideally I would like to see the concert room at the back run by volunteers. I don’t want to see it demolished and replaced with apartments because there are no alternative venues in the area where the community can get together. It’s very important to have a venue where people can come together for a drink.
“I’m hoping to speak to the tenants and residents group on the Flower estate to see if it can get involved.
“The problem is we are a deprived area and a lot of things are already being run by volunteers so they don’t have time to take on anything else.”
Planning officer Howard Baxter said the demolition was refused because it was a sensitive site surrounded by houses.
He added: “The storage of demolition material on the site is likely to have a harmful amenity impact.
“Further information was requested in January as to the details of the material to be stockpiled on site and the means of securing the site. This has not been provided and consequently the application has been refused.”
Site owner Peter Eyre previously said he would be happy to work with local councillors and residents to see if they could make the club work as a community asset.
Shiregeen became an unlikely tourist attraction after the 1997 movie about out-of-work Sheffield steelworkers turning to striptease grossed £250million. The function room was packed with hundreds of female extras when the 'big reveal' scene was shot there.
It was renamed Shiregreen Club and often hosted charity strip acts in the wake of the film's success.
It originally opened in 1919 and moved to the current site in 1928.
Before its closure, its lease was ended and it operated as a pub rather than a working men's club, despite committee members claiming it was still thriving with 450 members.
In the 1990s, financial problems meant the freehold of the building had to be transferred to a brewery to cover debts. It was sold to US beer giant Coors in 2004. A 25-year lease signed that year was later amended to give the owner the right to end the agreement with four weeks' notice.
A previous proposal to demolish the building and replace it with 24 homes was withdrawn in 2008.
Thre club's closing balance of £60,000 was split between members at its final meeting.
Lucy Ashton - Local Democracy Reporting Service