The block occupied by the Leith Depot has been earmarked for new housing and retail units, according to a statement by the venue.
It has only been opened less than 18 months, replacing a bar once branded the worst in the city for police call-outs.
But the Leith Walk venue has carved out a reputation as one of the city’s leading grass-roots music venues.
It is also one of the few year-round spaces for performing arts in the Leith area and also boasts a downstairs bar and restaurant.
The possible demise of Leith Depot has emerged just after the operators of a long-running city centre venue, the Citrus Club, announced they were closing within weeks after 26 years.
The city’s live music scene - which has suffered from the closure of a string of major venues over the last decade - lost another last month when Electric Circus closed its doors.
Its owners have agreed to give up a lease with the city council to allow the neighbouring Fruitmarket Gallery to expand.
Leith Depot’s announced has come just days after it emerged the Scottish Government, Creative Scotland and Edinburgh City Council had agreed to fund a new project to help artists lead the creation of a new “vision for Leith.”
The statement from Leith Depot said: “We’ve recently been informed by our new landlord, who took over six weeks ago, that it is their intention to apply for planning permission to demolish the entire block where Leith Depot and many other businesses and studios are located.
“If planning gets approved the demolition will start in 2019 to build new housing and retail units.
“We will, of course, be objecting to their plans, but we realise they we are very small opposition.
“We will be sincerely gutting if the plans are approved and your support would be very welcome. We’ll keep you updated when we know more.”