Manchester city council added more conditions to the club’s licence, including extra security measures and a ban on glass bottles, after a fight outside the venue in September.
In a statement, the club’s owners said: “Despite our best endeavours, we have become an unfortunate victim of circumstance.
“The licence conditions, imposed after a fight between a group of mindless individuals earlier in the year has made it impossible for us to continue to operate a premium club.
“The Circle Club always set out to provide a safe, fun and friendly environment for our team, members and guests, to enjoy. Safety has always been our number-one priority.
“To this end, we worked closely with Greater Manchester Police Licensing team to continually improve our operating policy in order to ensure we met our licensing obligations and kept our visitors and the general public safe from harm.
“We have enjoyed some fantastic nights at the club and built a reputation for hosting the wildest party in town for the most beautiful people.
“We would like to thank our guests and our loyal team, past and present, for making The Circle Club so special for so long.”
Since being opened 10 years ago, the club has been famous for its celebrity customers including Cheryl Cole, Will I Am, Usain Bolt, Katie Price, Bob Geldof, Ricky Hatton, Amir Khan and David Hasselhoff.