A MULTI-MILLION pound nightclub scheme in York has been withdrawn, it was revealed today.

But bosses at Nexus plan to resubmit their scheme in the next few weeks to double the existing bar's capacity and create the biggest club in the city.

Peter Brownsword, who manages the bar on the corner of Tanner Row and George Hudson Street, said the decision to withdraw was a "technical" one and that a new application would surface shortly.

The company had been applying for a "provisional statement" under new licensing regulations, but has been advised by its solicitors to apply for a "premises licence" instead.

Mr Brownsword said the new application would be the same as before and that Nexus had not had "a change of heart".

He said the company would continue to work with City of York Council licensing chiefs to find a proposal that could be acceptable to all parties.

Nexus wants to increase the capacity of its bar to 1,750. It has a turnover of about 2,500 customers on Saturday nights. The new club would fill the void left by Ikon and Diva, at Clifton Moor, which closed earlier this year.

The venue, which would benefit from a £1 million investment if a final application was given the go-ahead, would be dubbed as a "next generation nightclub".

It would include two lounge bars, a 950-capacity club room with dance floor and a coffee bar where revellers could safely order and wait for taxis.

Mr Brownsword said: "Over the next few weeks we will apply for a premises licence - it will be exactly the same application. Any changes will be minor. This is a purely technical, legal, decision. It is not a change of heart."

When asked if he was confident a new application would be a success, Mr Brown-sword said: "We have always known it was going to be difficult. The authorities have got a job to do and what we have got to do is prove to them that this will improve things in York. We believe we can do that."

Updated: 09:43 Friday, April 15, 2005