According to reports, the Golden Pudel venue in Hamburg may have been set on fire on purpose.
The fire broke out at 3am, while around 150 people were in the club but they managed to escape the building unhurt.
The extent of the damage is still unclear, with firefighters saying the building may be unusable while police have said the venue had not been completely destroyed.
This comes just before the Golden Pudel was meant to go up for auction on April 20, following an ongoing dispute between the club's two owners.
Patrick Swift is Mixmag's Weekend Editor, follow him on Twitter