''This is a great outcome,'' Mr Brumby said, adding that an opening night party might involve blocking off Wellington Street - which police were forced to close in January when 4000 music fans rallied against the pub's closure. That impromptu rally galvanised Melbourne music fans and led to the formulation of the Save Live Music lobby group, which led more than 10,000 people on a rally in February.

Seventh Tipple's Jon Perring said the company had applied to have the Tote's licence transferred to its name, after which it would apply to have the venue's high-risk conditions waived so it could operate profitably. He said he was also in discussions with the former licensee, Bruce Milne, to buy the Tote name, and had approached several of its former staff to return to the venue.

Last week performers including Ross Wilson, Mike Rudd, Kram and Clare Bowditch presented a petition with 22,000 signatures urging the government to remove the liquor licence provisions that now link live music and ''high-risk'' conditions. While Mr Brumby yesterday ruled out changing legislation to remove the conditions from live music venues generally, he said the independent director of liquor licensing, Sue Maclellan, had made some ''broad commitments'' to go easier on the venues, which can now apply individually to have the conditions altered.

Mr Brumby said it had been difficult balancing the live music issue with the need to tackle the increase in drunken violence. ''Hopefully we can get the best out of both worlds - we can still have a vibrant live music culture … and at the same time, through our other policies, get on top of alcohol-fuelled violence.''

Mr Perring paid tribute to the landlord for supporting live music. ''I'm sure they could have sold it to developers, which would probably have been easier for them.''