The Coronet nightclub at Elephant & Castle has won a year's extension to its lease and will remain open throughout 2017.
The building is likely to be demolished when the Elephant & Castle Shopping Centre complex is redeveloped.
"2016 has been an exciting year for us, featuring many memorable live shows and club nights and showcasing our versatility as a venue," said the Coronet management in a statement.
"Then just as the team were preparing for the last hurrah, this reprieve has re-ignited the engines. We hope to make 2017 even bigger and better than 2016 and make it a truly fitting farewell to this magnificent building, which is filled to the brim with musical history.
"We hope that over the next 15 months we will welcome you to enjoy this iconic venue with us, a stalwart of the South London entertainment scene for nearly 140 years."
Earlier this month the Theatres Trust published its tenth annual Theatre Buildings at Risk Register.
The Coronet is now ranked as the fourth most endangered theatre building in England – up from fifth place last year.