Kingston Council has struck a deal with the owners of Oceana that would see the nightclub keep its licence and stay open, the Surrey Comet has learned.

Councillors had revoked the Clarence Street venue’s licence during a public hearing last November, following the fatal stabbing of Jamie Sanderson.

Club bosses Luminar challenged the decision and were due to go head to head with the council and police at an appeal hearing starting on July 8.

But several senior sources have told the Surrey Comet council officers had backed out of the challenge amid fears it could lose the appeal and have to fork out thousands of pounds in court costs.

Instead, the council has agreed a series of conditions with Luminar, which will now be presented to Wimbledon Magistrates’ Court next Wednesday.

But it is understood several councillors are furious with how the decision was made without public consultation.

Labour chairman Laurie South said: "If we’re going to lose a lot of taxpayers’ money on a case we might not win, just be honest about it."

Conservative leader Councillor Howard Jones said: “As far as I’m concerned, the council made its original decision quite properly in accordance with the evidence it had before it.

“Now, if anybody wants to change that, it should be done in public.

“I have no idea of the exact details of the offers made because it’s clearly been done in secret by a very small group.

“My position is quite clear – these decisions should be made in public and the public should have the opportunity to review it.”

Kingston Council dodged questions on whether or not a deal had been agreed, instead issuing a statement from new council leader Councillor Liz Green on the authority’s continuing work with Luminar.

It read: “The council has been working with Luminar to consider a range of initiatives that might increase personal safety at their venue and improve the experience of visiting the town centre in the evening.”

Meanwhile Luminar has made drastic attempts to improve the club’s image in the wake of Mr Sanderson’s death on October 25.

In April, it set out a 10-point action plan to address anti-social behaviour and reduce noise following feedback from residents.

The company then announced the club had experienced an 80 per cent decrease in crime in the first three months of 2013.

Oceana has also implemented a major mobile phone safety campaign, and helped fund four new street pastors to help clubbers on nights out.

In a statement Oceana said it welcomed the decision before saying the statement had been released in error.

The company issued a new statement, in which Luminar chief executive Peter Marks said: “We are pleased with that the efforts we have made to respond to local residents’ concerns and further enhance safety and security at the club are being recognised. 

"The fact we can hopefully move forward constructively, reflects the efforts the team have made to build strong relationships with the police and local authorities to reduce crime and ensure that we continue to provide a safe environment for the young people of Kingston.”

Right decision? Call the newsdesk on 020 8744 4255 or email letters@surreycomet.co.uk