Three major nightclubs that attract thousands of people each weekend are to close because of the King's Cross redevelopment.

Dance venues Canvas, The Cross, and The Key, located in a former freight yard behind the mainline railway station, will shut this December as the £2billion regeneration plan to create 2,000 homes, offices, shops and the Channel Tunnel development gets under way.

The clubs, with a capacity of more than 4,500 between them, have been told by developer Argent their leases will not be renewed as work on the first phase of construction begins.

The annual TDK Cross Central music festival, which attracts up to 14,000 on August bank holiday weekends, will be held on the site for the last time this month.

Billy Reilly, who owns the clubs and has been involved with the area's cutting-edge nightlife for 20 years, called their demise the "end of an era".

Many of the biggest international DJs and dance acts have performed at The Cross, opened under disused railway arches in 1993. The Key and Canvas were formed four years ago in the building that formerly housed rave venue Bagley's.

Mr Reilly said: "I'm optimistic about the future of the area, but it will be sad to see these clubs go. The Cross was unique when it opened. There was no other club in the country built under railway arches. Bagley's was the first legal warehouse rave venue when acid house moved into the clubs."

Mr Reilly, who owns the Pacha club in Victoria, revealed he plans to return to the site with a new £4 million club once redevelopment work is complete in 2010.

He said: "I'm passionate about this area and plans for an entertainment quarter are all very exciting."