The site of the Chicago Rock club, on New Street, Barnsley, was badly damaged when a fire broke out last week.
At its height, South Yorkshire Fire and Rescue Service used eight fire engines to tackle the blaze at the disused building.
David Shepherd, Barnsley Metropolitan Borough Council's director for economic regeneration, said the demolition would take place over the weekend.
He said: "We've worked with Historic England to see if anything on the site can be preserved, but unfortunately we've come to the decision the building cannot be saved."
Mr Shepherd added the demolition would take place in order to "ensure people are safe and are not at risk from the building collapsing without any warning".
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Lookman, 19, is expected to have a medical at Everton shortly, after terms were agreed between the clubs.
Boss Ronald Koeman will then be keen to secure a deal for Schneiderlin, 27.
The France midfielder, who played for the Dutchman at Southampton, has been told he can leave Old Trafford.
Schneiderlin, who has also been linked with a return to France at Marseille, has failed to figure under manager Jose Mourinho.
It is understood Everton have had a £19m bid turned down but it seems certain they will return with a renewed offer closer to United's asking price.
United are keen to recoup most, if not all, of the £24m they paid Southampton in July 2015 and have also rejected an offer from West Bromwich Albion.
Koeman wants early recruits with midfielder Idrissa Gueye, arguably Everton's most influential performer this season, now away on international duty with Senegal at the Africa Cup Of Nations, and James McCarthy out injured.
Everton also retain an interest in another player marginalised under Mourinho at Old Trafford, Koeman's fellow Dutchman Memphis Depay.
Forward Lookman is expected to be first in at Goodison Park, with director of football Steve Walsh making his signing a priority.
Everton - with Walsh a key figure - are embarking on a policy of recruiting emerging young talent as well as established players.
The Toffees signed teenage striker Dominic Calvert-Lewin from Sheffield United for £1.5m in August and the England youth international started the 3-0 win against Southampton on Monday after several appearances as a substitute but was forced to go off early on with an ankle injury.
Charlton had hoped Everton would loan Lookman back to them for the rest of the season but he is seen as someone who could quickly play a part at Goodison Park.
A former nightclub gutted by fire is to be demolished.
[NEXT_CONCEPT]
Everton are close to completing an £11m deal for Charlton Athletic teenager Ademola Lookman - and will then intensify their interest in Manchester United's Morgan Schneiderlin.