The Walkabout bar in Wimbledon has withdrawn its application to extend its opening hours after the plans sparked outrage from local residents.
Objections had flooded into Merton Council about the Australian-themed bar's application to sell alcohol to 2am, with many fearing the proposal would increase crime and disorder in the town centre.
In a statement, Walkabout said: "In light of concerns from local residents, the police and the council, we have decided to withdraw our licence extension application.
"We also intend to set up meetings with the police, residents and councillors so we can find out more about their concerns.
"We would like to reassure all residents that our aim has never been to cause disruption but to make a positive contribution to the ambiance and economy of Wimbledon town centre.
"We are a responsible pub operator and have a reputation across the country for running the most responsible and safest venues on the high street, as endorsed by several recent award wins and commendations, all of which relate to responsible retailing."
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