The Outback, in Queen Street, Wolverhampton, will be transformed into nine one-bedroom flats in a scheme being considered by Wolverhampton Council.
The Grade II* listed building dates back to the early 1800s and was a library and newsroom before becoming a county court.
It later became Chancellors nightclub, then Walkabout, and most recently The Outback, which closed down in March last year after having its licence suspended following a stabbing in the street outside.
A statement accompanying the plans describes the site as "one of the remaining buildings of quality in Wolverhampton" and that converting it into flats will "restore character" to the area.
It says the exterior of the building is to be "refurbished and restored with stucco repairs and redecoration of the stucco with breathable paint".
Windows will also be repaired, while internal work will result in "minimal structural alterations and the retention of historic details such as dados, cornices and other decorative elements which give the building its character".
The statement adds: "The design approach emphasises the qualities of the existing building and provides it with a sustainable use well into the future."
It says there is "little scope" for on site parking, and that boundary walls will be repaired and re-pointed and new gates erected.
The communal courtyard is to be re-paved and planters incorporated to introduce some soft landscaping.
The Outback lost its licence in February 2019 following recommendations by West Midlands Police. It followed allegations of gang violence outside the venue the previous month, which saw a man stabbed in the back.