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The Bing strip club in Canterbury could be demolished and replaced by flats designed by award-winning architect Guy Hollaway.
Enterprise Inns has sold the Dover Street building to a Surrey developer who wants to build 20 apartments over three floors.
Club owners father and son Ralph and Alastair Noel are considering their options, which include moving to another venue in Canterbury or going to another part of Kent.
And they revealed they are also in talks with a production company over a reality TV show about the lives of its dancers.
The Bing, which opened in the autumn of 2013, has 22 years of a 25-year lease remaining and is under no obligation to vacate the building.
Ralph said: “The developer is not forcing us out.
“Should he gain planning permission, he is giving us the opportunity to explore many options.
“If he doesn’t get planning permission, then he has been discussing the idea of expanding the venue. Either way, it’s a very exciting time for us.”
Alastair says the potential TV show could be produced along the lines of Geordie Shore or The Only Way Is Essex.
“After just two years of The Bing project I can’t believe how many doors are opening up – it is a superb time for us,” he said.
Earlier this month the Noels renewed their sex entertainment venue licence with Canterbury City Council.
Former Labour Lord Mayor Fred Whitemore, who lives in Dover Street and is the chairman of the Oaten Hill and District Society, opposed the licence renewal.
Hearing that the club may shut, he said: “We have always maintained that this site is ripe for development and that it is the wrong place for this kind of business.
“I’m largely positive about this news, but I would want to know what the specifics are. I would welcome a residential block, but would be concerned if it was for students.”
Residents in Oaten Hill were due to received leaflets on Wednesday outlining the proposal and inviting them to inspect plans for the development next Wednesday.