Management of long-running Melbourne live music venue, Caravan Music Club, have announced that it will be closing at the end of the year.

In a statement issued this week, the Caravan crew announced that a proposal for a secure lease and bar autonomy, as well as improved infrastructure, had been rejected by the Oakleigh Carnegie RSL.

"The OCRSL committee considered our proposal for six weeks and notified us on July 12th that they were not able to accept any of the key components of our draft and on July 17th advanced Caravan Music a new licence agreement which included a set of onerous operational conditions of tenancy and financial expectations which make continuing on unviable," the statement reads.

"The RSL committee has kindly consented to us continuing on 'til Christmas to fulfil our 2017 program of gigs… under the current licence agreement.

"Whilst feeling a tad disappointed we were unable to find a mutually agreeable position. I feel absolutely no angst towards the OCRSL Committee, accepting they have every right to administer their building however they see fit."

The Caravan Music Club has hosted a number of big-name acts during its ten-year run including Paul Kelly, Archie Roach, Tex Perkins, Mary Chapin Carpenter, John Butler, Kylie Auldist and Ellie Hooper.

"The strength of this gig has been the wonderful tribe of genuine music lovers who've gathered in this lovely room week after week to celebrate music and community," the statement continues.

"It is that special respectful and welcoming vibe that has enabled us to punch well above our weight and attract artists of a calibre you wouldn’t expect to see in a little hall out in the 'burbs."

It concludes, "Thanks so much to you all for all the love and magic …it’s been one hell of a ride!!!"

Check out the Caravan Music Club's Facebook page here.