One of Birmingham's most popular nightspots is to close next year and be replaced by a housing development.

The Tower Ballroom in Edgbaston is due to be bulldozed as part of a massive regeneration of the Edgbaston Reservoir area as revealed in The Birmingham Pos t last year.

More than 80 acres of land surrounding the reservoir are to be redeveloped with new bars and restaurants designed to attract tourists into the area.

The Tower started life in the 1870s as a roller skating rink and became a dance hall in the 1920s. As well as one of the city's best-known nightspots, it was also as a location in the popular ITV series Boon.

Staff at the venue, operated for the past two years by Leicester-based Nexum Leisure, were told of the closure decision when they turned up for work over the weekend.

Chris Vaughan, chairman of the Friends of Edgbaston Reservoir, said: "The Tower will be sadly missed by a lot of people.

"We're hoping whatever they decide to put in its place will blend in with the reservoir and be in keeping with the environmentally-friendly nature of the site."

Local historian Carl Chinn said it was a "very sad day for the history of entertainment in Birmingham".

He added: "The Tower Ballroom played a vital role in the entertainment world of the West Midlands. It has been a major venue for Brummies of many generations from the big band days right through to disco.

"Many older people will remember Leslie Douglas and band, who were a big band from the 1940s.

"It was also a great meeting place for people - a huge number of couples met there."

Graham Percy, spokesman for the Tower, said all permanent members of staff had been consulted about the plans for the closure.

He said: "Although this is a sad day for those who have enjoyed their evenings out at the Tower, we intend to do everything we can to make sure the final months are some of the most memorable in the venue's history.

"There will be parties galore, and a line up of top entertainment, dance and disco evenings to let everyone say 'farewell' in style."

Mr Percy confirmed all existing private bookings until 2006 would be honoured and said the decision to call it a day had been a tough one.

He said: "The decision to accept the offer, made out of the blue by Countrywide Properties, was not an easy one to make.

"But its waterside location, proximity to the city centre and the need for new affordable housing in Edgbaston made a compelling case for redevelopment."

He added that no further details of the housing were currently being revealed, for commercial reasons.