The Royal McGregor bar, which has been operated by the same family for 20 years, will not open its doors again.
Posting on their social media, the family wrote: "It is with a heavy heart that we need to inform our dear customers that the Royal McGregor will not be re-opened by the McGregor family who have operated the site for the past 20 years.
"With only 18 months left on our current lease the COVID-19 pandemic could not have come at a worse time. Despite our best efforts our landlord would not agree to a lease extension which would have made continuing to trade a viable option.
"We have shared so many wonderful memories with our loyal customers, family and amazing staff and will miss you all dearly. Thank you for being part of our success story, we will forever be grateful.
"Please share any pictures you have either enjoying our hospitality or working with us. It would be nice to reminisce! Best wishes for the future. James & Marie-Claude xxx"
The bar and restaurant, which is situated in the middle of The Royal Mile in Edinburgh, focused on single malt whisky and Scottish classics such as haggis, neeps and tatties and fish and chips.
It was also known for its affordable full Scottish breakfast, which had all the trimmings.
The news of the closure of the Royal McGregor comes just a few weeks after it was announced that Castle Terrace and The Tower restaurants would not reopen following lockdown.
Family owned Hendersons vegetarian restaurant has also remained closed.