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Mosgiel Memorial RSA chairman Peter Amyes confirmed yesterday members moved at the weekend to sell its main building and construct an extension at 3 Church St as a base for the club.
That property, which the RSA also owns, houses a building used by the Mosgiel Memorial RSA Bowling Club.
"That is a concept, so the detail around that may or may not happen."
He did not want to speak further about the proposal until a board meeting this week when it will discuss the implications of the decision.
The proposal was brought to the board by bowling club chairman Edwin Harley.
He said it was an option that worked for the RSA as well as the bowling club.
"The idea was to get them somewhere where they can keep going and survive," Mr Harley said.
The club did not want the RSA to sell the bowling club building as the club was "strong" with 106 members.
"If they do what they're planning, there's no reason we can't continue on for years. "
The proposal included extending the building, thereby increasing its capacity from 60 people to about 120.
The idea was for it to contain a bar and restaurant.
"That's the intention, but we still need consents and stuff. It definitely will take a long time."
When the RSA sold its clubrooms, the bowling club could get a temporary alcohol licence to house a bar until plans were finalised, Mr Harley said.
"All I want to do is keep harmony between the RSA and our club."
The move to close the restaurant and bar comes only four years after the completion of a $1.2million redevelopment of the Mosgiel RSA complex.
The aim was to replace the previous "beer barn" look with a brighter, more modern and livelier cafe-style approach, including a modern restaurant.
The club issued a statement in April saying it would close its bar and restaurant due to declining membership and higher operating costs.