The Tuxedo Princess is berthed beneath the Tyne Bridge
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A floating nightclub on the Tyne will be able to continue to operate after police withdraw an application to revoke its drinking licence.
Northumbria Police were concerned about high levels of drink-fuelled disorder associated with the Tuxedo Princess.
But the company which owns it, Absolute Leisure, has now agreed with licensing magistrates to stop any promotion which encourages binge drinking.
This includes ceasing to offer unlimited drink for a fixed price.
Ch Insp Mick Wilkinson, of Gateshead Area Command, said: "We are pleased that the good working relationship we have always enjoyed with the Tuxedo Princess is continuing and that the club's owners have acted responsibly following our concerns."
Nicholas Quadrini, Absolute Leisure, said that the fixed price drink promotion evenings had stopped about five weeks ago.
He added: "We very pleased, and are going to work with the police."