Glasgow’s oldest pub has been saved from demolition after developers had a rethink over plans to build a new student residence block in the Merchant City.

Structured House Group has agreed to retain and refurbish the Old CollegeBar on its existing site with its current interior reproduced in an identical form.

The building, parts of which are believed to date back to the late 15th Century, is not listed but there has been a pub on the site since the early 1800s and it retains a fond place in Glaswegians’ hearts.

Developers originally felt that because of the poor state of the building, located on a site over a railway tunnel fraught with safety and structural issues, it would have to be removed.

Following representations, the company has agreed to alter its plans to retain the pub on the site. An amended application is due to go before city planners on September 19.

The company plans to build a 12-story complex on the site to meet a burgeoning demand for student accommodation in the city.

The £40million plan will create a 401-bed student complex on the corner of High Street and George Street that would also feature restaurants and shops.

Co-working offices will also be installed where locals and university start-ups can utilise the space and raise start-up capital.

Craig Inglis, chief executive of SHG, said: “As a Glasgow-based company, we have enormous respect for the city’s built heritage and we recognise the important place that The Old College Bar holds in its history.

“We’ve worked with city council planners, universities and local businesses on our design for the past two-and-a-half years to create an iconic building that will stand tall as an entrance to the city from the East.”

He added: “There’s no disguising the poor fabric of the Old College Bar building as it stands and so we will have to replace it.

“However we will take the interior out carefully and create a snug which will give the locals a perfect replica of the bar as a refreshed version that will allow it to continue with its long running license.

“Our amended plans aim to retain as much of the character and charm of the existing pub but to put it on a footing that’s appropriate for today to safeguard its future, hopefully for the next century.”