The Fitzroy Victoria Bowling & Sports Club recently signed a new lease following the end of its 21-year "peppercorn" agreement with Yarra City Council.
Vice President Rodney Draper assured that this would not mark the end of the club, pledging to work hard to keep it afloat.
The club leases Crown land from the council and began negotiations last year.
Draper acknowledged that while the rent increase was anticipated, it was still disappointing.
"Any bowls club would be unhappy with the size of the increase, as we are," he said.
"It's absolutely essential we afford $60,000 a year because this bowling club has been here since the mid-1800s. One way or another we will find that (money)."
"We have known about this for six months so it's been something that hasn't come to us overnight but it's been a gradual of coming to terms of what we are up against.
"We won't let this club fold, this is an important community club and so we need to make sure the future of the club is here and one way or another we will make it work."
The club will now need to reassess its funding strategy, which may include increasing prices for alcohol and function spaces.
"We are going to work hard on tightening things up in terms of what we are charging for the various functions areas," Draper said.
A Yarra City Council spokesperson said the "new rental agreement struck with the bowling club was benchmarked against similar hospitality venues in the area and the club's for profit operations".