XXL has operated from the Pulse club in Ludgate House since 2011, which is part of a £1.3bn development with Sampson House.
Forty jobs will go at the club which has been open since 2000.
Developer Native Land have today confirmed they will look to fill a new cultural space in their development with an LGBTQ+ occupier, chosen with Southwark Council and the LGBTQ+ community.
Southwark councillors have been working with XXL to find a new venue, but have faced criticism over the club’s inclusivity after the nightclub refused entry to a man wearing heels last year.
Mr Ames faced backlash for a social media post where he said he “couldn’t give a toss about the rest of the scene” but has since apologised.
Mr McNeill said the high heel door policy was in place for insurance purposes.
Cllr Johnson Situ, Cabinet member for growth, development and planning, said the council valued the borough’s LGBTQ+ community and would strengthen policies to greater protect venues.
He said: “I would like to assure you that the council greatly values the borough’s LGBTQ+ community and does not want to see any decline in the borough’s nightlife.
We have also been working with XXL to help them find a new venue in Southwark, potentially with a more inclusive and diverse offer for the wider community, in response to concerns expressed by members of the wider LGBTQ+ community about previous conduct and comments.”