Pub regulars who mounted a year-long campaign to have their pub reopened after flooding are furious it may be demolished to make way for housing.
An outline planning application was presented to Brighton and Hove City Council last week to knock down the White Admiral pub in Taunton Road, Lower Bevendean.
Residents have just three weeks to object to the council.
The application is a bitter blow to pubgoers who have fought for more than a year to have it reopened following the flooding of October 2000.
When the pub failed to reopen, regulars voiced concerns the prime site was being earmarked for housing, although Inn Business, the company which runs the watering hole, denied the rumour.
Residents collected more than 600 signatures on a petition in just six hours last year, asking the council to step in to get the pub reopened.
The popular pub found fame when it was used as the set for the Nag's Head in the BBC's Only Fools And Horses series.
The pub stands on land owned by Brighton and Hove City Council but the pub group The Punch Pub Company, the parent company for Inn Business, holds the lease until 2054.
The brewery has advertised for a licensee for the pub on its web site but residents say the company is asking too much for the licence and has put off any prospective licensee.
Father-of-two Peter Mack, of Bodiam Avenue, Bevendean, said: "We knew this was on the cards. This is the only community facility on this estate.
"If they build houses on it there won't be anywhere for anyone on the estate.
"It's two bus journeys to the nearest pub and people will drink-drive. It will happen."
Mr Mack urged people to write to the council to protest.
Councillor Anne Meadows said: "I'm very sorry it has come to this.
"The brewery has not, in my opinion, attempted to put the pub back as a facility for the community. It's a great shame."
Councillor Francis Tonks said he would be speaking on behalf of residents when the application came before the planning committee, probably on February 27.
He said: "I would like to see it become a pub again but it would need a lot of money to be spent on it.
"Even a club, as part of the development, would be welcome. There needs to be a social centre in the area."
The company which has applied for outline permission is London-based Wadefield.
A spokesperson for Inn Business said: "We are in discussion with a number of parties regarding the future of the White Admiral site, including Wadefield, a property developer specialising in the provision of low-cost housing.
"The pub suffered extensive flood damage in October 2000 and to redevelop it will require substantial investment from both The Punch Pub Company and a new licensee.
"As of yet, we have been unable to find a partner to take on the tenancy and this has prompted us to look at alternatives. We will announce details as negotiations progress."
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