The music will live on at Sydney's oldest licensed live venue The Basement, marking a rare win for the city's struggling nightlife.

Key points: The Sydney duo behind the Lansdowne Hotel will reopen the Basement as Mary's Underground

The Sydney duo behind the Lansdowne Hotel will reopen the Basement as Mary's Underground They are confident the venue will thrive despite lock-out laws and say Sydney needs more small music venues

They are confident the venue will thrive despite lock-out laws and say Sydney needs more small music venues The Basement ran for 45 years and staged a long list of acts including Prince

The Basement, one of the country's first jazz and blues club, was forced to close its doors in 2018 after 45 years of hosting local and international talent, including Prince, Herbie Hancock, Dizzy Gillespie and James Morrison.

The shutdown was seen as a devastating blow to Sydney's night culture as The Basement had survived the worst of the lock-out slowdown, and there were fears the site would become corporate real estate.

Jake Smyth and Kenny Graham (R) said they want Mary's Underground to be a return to the days of dinner with a show. ( ABC News )

But a duo who have already proved their passion for live music have stepped in.

Jake Smyth and Kenny Graham, who own the Lansdowne Hotel in Broadway and the Unicorn Hotel in Paddington, told ABC Radio Sydney they wanted to let the "old girl sing again".

The Circular Quay venue will re-open as 'Mary's Underground' and will set out to prove that live music in Sydney is not dead.

"Musicians just haven't had a home to play," Mr Smyth said.

"The smaller venues [that have closed] were the homes where musicians got to explore and create their sound … that's what we are missing."

The last Sunday evening performance at The Basement in Sydney. ( Instagram: @vincenthoooooo )

Mr Smyth said the pair were bowled over by enthusiasm by artists who would bang down doors to play at the Lansdowne.

"We want to foster that community," he said.

Mr Smyth said they felt an energy when they were given an opportunity to look inside the site of The Basement, and they were confident it would thrive despite the dulled nightlife industry.

The Basement attracted international acts like James Bay in 2015. ( Facebook: The Basement )

"There has been no lack of crowds coming to the Lansdowne … the more venues we have the more artists come out," he said.

Although The Basement was an altar of jazz, Mary's will be a "broad church" of genres that won't discriminate.

Young and emerging musicians whether they be local, national or international will be welcomed with open arms.

Mr Graham said The Basement had a history of great music but didn't meet the high expectations Sydney now has around food.

"Before it was all about the music and the food took a single fiddle but now we want them on a level-playing field."

He also said Mary's will be predominately free in a move away from ticketed events.

The pair are hopeful for a May opening and Mr Smyth's mum, who used to work the door at The Basement, will make an appearance for opening night.