Management of Melbourne's much-loved Bella Union have this week announced that the venue will close after 12 years in business.

The news comes after the Carlton entertainment space was denied a five-year lease extension in December by the Victorian Trades Hall Council (VTHC).

Though an official date has not been announced, management have confirmed they must vacate the premises by late October. 

"We have all worked hard to create a venue that embraces creativity, diversity and, perhaps most importantly, the possibility of experiencing joy," company founder and director, Catherine Woodfield, said in a statement.

"Those values are most evident in the passionate and highly capable Bella Union crew. Their warmth and active investment in the success of the events we host has contributed significantly to many memorable nights for performers, patrons, promoters and event organisers alike. 

"This simple, humanistic spirit is much greater than the physical space we've been taking up within this historic union building."

After opening in 2005 with the premiere season of Keating! The Opera, the Bella Union has gone on to host a number of big events, including the Melbourne Fringe Festival and Eurovision broadcast parties.

It has been suggested the venue will revert to being a bar for union members in 2018 and beyond.