Leichhardt's mayor Darcy Byrne has claimed the iconic Annandale Hotel has been saved as an entertainment venue, calling it "a mighty victory for music lovers across Sydney".

Contrary to incorrect reports in Tuesday's Daily Telegraph, which reported the property's new owner would turn the site into apartments, Leichhardt Council was told by the agent handling the sale that the venue has definitely been sold to a publican who will keep it as a pub.

Joan Jett and the Blackhearts live at the Annandale Hotel SMH Photo by Anna Kucera Credit:akucera@mac.com

But the immediate future of the venue is uncertain as the new owner has not yet been named. Mystery surrounds the new owner's identity; several prominent Sydney publicans and real estate agents who handle hotel sales told Fairfax that the grapevine usually springs high profile buyers, but there's not been a whisper in this case.

The expected sale to a publican - confirmed to Fairfax by several sources - would however keep alive Leichhardt Council's plans to create a live music precinct around the hotel.