Doubts have emerged over whether developer Linkcity will proceed with buying the Cambridge Hotel to build a student accommodation tower.
Multiple sources have told the Newcastle Herald that the Newcastle West project has fallen over or is in doubt.
One source said the Cambridge sale had a November 1 deadline.
The pub's owner, John Palmieri, and Linkcity Australia general manager Hubert Dumont did not respond to requests for comment.
Linkcity's Australian subsidiary lodged plans in July for a 21-storey building on the Hunter Street site which would include accommodation for 560 students in studio, twin and four-bedroom apartments.
Two months later, University of Newcastle lodged a development application for preliminary works on a 480-bed student accommodation building at Honeysuckle.
The Cambridge closed in June despite a community campaign to try to keep the popular live music venue open.
The hotel's operators have since established a new live music venue in the redeveloped King Street Hotel.
Linkcity's website lists "Newcastle student accommodation" among its two ongoing development projects in Australia but offers no details or artist's impressions of the building.
The France-based firm entered the Australian market in 2018.
The company conducted a design excellence competition for the Newcastle building, won by Sydney firm GroupGSA.
