Last year, the owners of the former Top of the Town nightclub, in Great Russell Street, The Mounts, were refused permission to demolish the building and replace it with flats by the West Northamptonshire Development Corporation (WNDC).

The WNDC argued people who moved into the new flats would suffer noise problems from the nearby Soundhaus nightclub and the Chronicle & Echo.

But a planning inspector has overturned the decision, saying anyone who buys a flat next to a nightclub knows the problems they could face.

In her investigation into the scheme, planning inspector Julia Gregory said: "It seems to me that anyone wishing to live in the flats would be aware of the presence of the neighbouring venue and would make their decision accordingly."

She also rebuted the WNDC's argument that Great Russell Street should be redeveloped as a whole, rather than one building at a time.

The decision has been welcomed by the owner of the Top of the Town, Northampton businessman, Sajad Shah.

He said plans would now be put into motion to knock down the former club, adding: "We're very happy. We all know that area needs something doing to it and I don't know what they were thinking when they turned us down originally.

"But this decision paves the way for the building to be demolished now and the new flats to be built.

"I think it will have a big impact on the whole area. It should be a start of real regeneration.

"We still need to deal with all the plans for the building, so it could be a while before it comes down, but it will now happen."

The Top of the Town was built as a working men's club in 1978 and later became a nightclub before closing in 1991.

Since its closure, the lurid plastic building has become a magnet for vandals and arsonists.

Mr Shah's development plans would see the former club replaced with a four-storey block of flats and offices.