POLICE have agreed to withdraw their objections to a nightclub being allowed to stay in business.

The owner of the Tuxedo Princess, moored at Gateshead Quays, has agreed to stop promotions where people can drink all night for a fixed price.

The ship is famous for its cut-price drink promotions and revolving dance floor, but has recently attracted negative publicity after spates of assaults, criminal damage and breaches of the peace because of excessive drinking.

The club has been closed on Thursday nights since the police asked Gateshead magistrates to revoke its licence - but yesterday, after discussions, the application was withdrawn.

Chief Inspector Mick Wilkinson denied the police had wanted to get the nightclub moved to a different location after suggestions that it spoiled the upmarket image of the revamped Quayside.

He said: "There have been recent suggestions that the action taken by Northumbria Police was in order to remove the Tuxedo Princess from its position on Gateshead Quays.

"This is not the case, and the application to revoke the licence was made as a direct result of crime and disorder associated with the Tuxedo Princess and the consumption of alcohol."

Two men have died in incidents after "drink all you want" nights since November 2003.

A spokesman for owner Absolute Leisure said: "We have a long and amicable working relationship with Northumbria Police and we are delighted this matter has been resolved to everyone's satisfaction."