A committee bought the former Jesters, in Sneinton Dale, for £400,000 at auction in September last year, naming it the Jamia Masjid Sultania and Islamic Education Centre.
But they have so far been unable to convert the building because of a lack of money. Committee vice-chairman Yunas Naroo said: "Although we have bought the property, it needs a lot of work to make it into a mosque.
"At the moment we don't have funds to start the work."
The mosque and education centre is currently in Sneinton's Thurgarton Street and will move into its new home as soon as work is completed.
Nottingham City Council has granted full planning permission. Once complete, the building will have large prayer rooms and places to wash.
Mr Naroo said: "On Friday, for the special prayer, we are jammed packed. Usually 500 people turn up."
So far the mosque has relied on donations from the Muslim community.
Business people in Sneinton have donated up to £25,000.
Aurangzeb Khan, chairman of the centre, said: "We can't get any grants for mosques, we rely on the Muslim community and voluntary donations.
"We are hoping to arrange charitable dinners to raise funds."
Mr Naroo said Holy Koran classes, which run daily, usually have between 120 and 140 children attending, split into four different rooms.
Mohammed Shazad Altaf, 25, from Swinburne Street, Carlton, who attends classes, said the current mosque lacked space.
He said: "When there are a lot of community and Islamic gatherings, there isn't enough room.
"For example, on Eid prayers, some people don't have the chance to read inside because of the lack of space, even though there are two sittings."
Mr Altaf said that by having a bigger mosque, it might encourage younger children to attend more.
"Other mosques have sports halls, so it would be nice to see maybe a snooker table or something," he said.
The management committee is looking for quotes from builders for the work.
It hopes the new centre will be open by next Ramadan.
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