The Annexe is undergoing a £3 million revamp and is set for an autumn completion.
The building, which is located on Park Street, has been closed for three years and was previously a club and bar. The refurbishment commenced in early June and is being carried out by Redgate Contracts.
The Lincolnshire-based firm specialises in the renovation of clubs and bars, previously being hired to construct Riley’s Pool and Snooker Club on Silver Street.
The new building will still be a bar and run and owned by the previous landlords, but it will undergo a re-brand and won’t be called The Annexe anymore.
It will consist of three floors with four separate bars and two dance rooms. It will also have a 140 person capacity smoking terrace and will open to serve food and drinks during the day.
John O’Donoghue, one of the building’s owners, said: “This new venue will be great for the city and the building deserves the investment it is receiving. It is a really unique building and in a great location.
“This is the biggest development in the UK since the recession and I think Lincoln will appreciate the new club.”