The Talisman on Wildtree Avenue, could be torn down under new plans to regenerate the site – with apartments and shops earmarked in the new development.
It comes after a decision to close the pub, in the Scotlands area, in December last year because of ongoing disorder and serious criminal activity.
Plans have now been lodged with Wolverhampton Council, which will decide whether the plans go-ahead to transform the dilapidated site – which has been hit by vandalism and fly-tipping since its closure.
Two buildings will be built under the proposals, including six retail units with nine apartments above – and a separate building housing 10 apartments.
A statement from Simpatico, on behalf of Dudley’s SEP Properties LTD, said: “The application site, which was formerly a public house with associated access and car park, is currently disused, having been forcibly and permanently closed as a drinking establishment.
“It is proposed to demolish all existing buildings within the site, addressing the current harm it is causing to visual amenity in the locality, and to erect in their place a new mixed use development including retail and residential units.”
It comes after the community pub was raided by police who found it to be at the heart of a drug ring in 2016.
Police seized crack cocaine, digital scales and several bags and wraps of cannabis in the bar and toilets.
And the pub was closed for a second time in December pending a licence review, which was subsequently revoked.
The statement adds: “This development proposal represents the opportunity to regenerate a disused site from which serious disruption to the local community, including as a result of violent crime, has emanated.
"Once redeveloped as new retail space and much needed entry level homes, the site will make a positive contribution to vitality, character and visual amenity in the locality.”
MP Emma Reynolds, for Wolverhampton North East, said: “It’s always a shame to lose a local pub, but the site had become a bit of an eyesore so I’m glad it could be redeveloped.”