The former Palace Nightclub, which closed six years ago, is being converted into The Sands Venue which will create almost 100 jobs at the Central Prom site.

Businessman Peter Swan, whose company Coolfun Ltd operates a similar Sands Venue venture in Gainsborough, Lincolnshire, is the new owner of the seafront venue.

Tourism chiefs, hoteliers and and landlords have hailed the news as confirmation "the town is moving forward" by regenerating the night-time economy and attracting more visitors.

The Sands Venue will create nearly 100 jobs – including international chefs – and is planned to open in early August with staff interviews being conducted from April onwards.

Peter Taylor, StayBlackpool secretary, said: "Any investment in the town is welcome. It's good to give people an extra reason to visit."

A seated entertainment and restaurant area with space for between 240 and 300 people will replace the main dance area at the former superclub.

There will be two smaller dance floors, a large bar and chill out lounge areas, along with a seafood bistro, champagne bar and a VIP area seating a further 150 guests.

There will be also be space for standing tickets.