The blaze broke out at Koko in Camden Town, which has hosted performances from the likes of Amy Winehouse, the Rolling Stones and Ed Sheeran, on Monday evening.
The hefty fire is already being tackled by the London Fire Brigade with about eight trucks and sixty firefighters on the scene.
Koko, previously Camden Palace, is now closed for "major state-of-the-art transformation", according to its website.
One of the classic London music venues, KOKO is on fire.
Camden locals posted footage of the fire on social media, praising the Fire Brigade's swift response that avoided further damage.
"The amount of support we have received from the public has been wonderful and we'll be doing our best to get the redevelopment of this iconic building back on-track".
Camden's iconic nightclub, Koko, was on fire tonight as firefighters struggled to save the place.
The venue, owned by businessman Oliver Bengough, has been closed since March 2019 to undergo a "major, state-of-the-art refurbishment" and was due to reopen in the spring of 2020. Dozens of firefighters are on the scene.
Disappointing when looking at the Camden Palace / Koko in flames this evening, a building which holds so many memories and which means a lot to us in Camden.
The building was closed for large refurbishments at the time of the fire, with most of the building covered in scaffolding.
"The Brigade was called at 8.56pm and the fire was under control by 2.37am".