Because of the agreement, The Blue Flower - formerly the Cactus Club - in Earsham Street, Burngreave, is being allowed to continue trading, subject to reduced hours, by Sheffield Council's licensing board.

Police had asked the committee to review the club's licence, citing past problems including the venue being a "safe haven" for criminals such as armed Yardie gangsters, plus drug dealing, serious violence and firearms offences.

Officers said they did not support the venue operating.

But Insp Adrian McWalter, of South Yorkshire Police, withdrew his application after discussions with owner Castel Fanty and because there have been no major incidents in recent months. Licensing board members gave the Blue Flower formal permission to continue trading, under management of new designated premises supervisor Veronica Carr, of Pitsmoor.

But at the hearing Sheffield Council solicitor John Derricott told Ms Carr, Mr Fanty and police: "We would ask that South Yorkshire Police and the licence holder work closely to support our four core objectives - prevention of crime and disorder, protection of children from harm, public safety and avoiding public nuisance.

"It's important, otherwise we can all see ourselves back here in the future."

The Blue Flower's hours have been reduced to closing at midnight Monday to Wednesday, at 4am on Thursday, Friday and Saturday night, and at 1am on Sunday night.

Mr Fanty, who has previously said problems at his venue have been "ironed out" declined to comment about the hearing.

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