The Lincoln Constitutional Club will undergo major refurbishment until August, as the building is transformed into a new club with three floors.
The commercial property was offered to let for £1 million and it has been bought by Tokyo Industries, who is set to invest £1.5 million in its renovation.
The building on Silver Street is one of several historic landmarks that are still left in Lincoln, but are derelict.
Built in 1895 by architect William Watkins, the Grade II listed building is a semi-derelict shell that has been vacant for 15 years.
The site is owned now by Tokyo Industries, a large chain with over 20 clubs, which plans to completely renovate the Constitutional Club.
The building has been close to being restored to life in the past, but has always been let down by investors pulling out of construction. A previous £2 million project fell through in October 2008.
The new club is set to feature a restaurant on the ground floor, a 1,000 people capacity dance floor, and a 280 capacity live venue in the basement.
Matt Derbyshire, 20, said: “The night life is dead, and with the growing number of students, Lincoln definitely needs another club.”
Julie Robins, 24, said: “I’m not sure, we have a few here already, it depends how it is with prices and the look.”