Strippers have been refused the right to dance naked for paying customers.
Bosses at the Pussycat Club in Hove applied for a variation to their licence to enable topless dancers to remove their G-strings.
But Brighton and Hove City Council's licensing panel yesterday rejected the application on the grounds that it would increase crime and disorder.
Ken McGrath, who owns the Pussycat, said he would be appealing against the decision.
The licensing panel granted the Church Road club permission to extend its weekend opening hours to 4am. It will continue to close at 2am during the week. The minimum age for entry to the club will be lowered from 21 to 18.
The changes will come into effect on November 24.
Sergeant Peter Castleton, of Sussex Police's community safety team, said although there was no evidence to show the Pussycat Club was poorly run, he feared that allowing dancers to strip naked for the final 45 seconds of a three minute dance might provoke aroused men into committing sexual offences once they had left the club.
He said: "We are concerned that the premises, despite robust management, will potentially descend into a sex encounter establishment with associated links into the sex markets, drugs and organised crime."
Sgt Castleton added that full nude dancing would lower the tone of entertainment in the city and turn it into a destination for sex tourism.
Nude dancing is currently forbidden in Brighton and Hove clubs and the application drew an angry reaction from political leaders who said they were concerned the city could end up with a seedy reputation.
Speaking after the hearing, Mr McGrath said he had been shocked and disturbed by the police remarks. He said: "The panel reached the wrong decision and the courts will address that. The police have no evidence for their arguments and were expressing a general opinion."
Mr McGrath also wants to introduce naked dancing at the Top Totty Club in Grand Parade, Brighton. His application will be considered on Monday at 2pm.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article