Publishers Millivres Prowler Group, which also owns Gay Times and Diva, decided to change the format after buying the title late last year.
The Pink Paper's previous owners turned it into a news magazine four years ago, but its new bosses plan to restore the paper's traditional emphasis on news and "hard-hitting stories".
Rob Dean, the Pink Paper's head of business, said: "The need for a proper lesbian and gay newspaper has never gone away.
"Despite there being over a dozen free gay titles in the UK, amost all are in a similar format and increasingly focus their editorial on 'the scene' -- gay pubbing and clubbing, a major source of revenue for the free gay press."
Dean said that gay news had been dropped from the agenda of many magazines, and that mainstream media had failed to report consistently on gay and lesbian issues.
The new-look paper will be distributed free across its traditional network of bars, cafes and bookshops across the country from February 17, along with new distribution outlets in universities and women's venues, building on a circulation increase of more than 30% in the last three months.
Along with news reporting, the paper will carry new travel and entertainment sections along with a recruitment section that the publisher hopes will attract companies wanting to "encourage diversity in the workplace".
Tris Reid-Smith, editor of the Pink Paper, said: "We looked very carefully at what gay Britain really wanted from its paper. Overwhelmingly, people are demanding real news and the changes we have made will help us deliver hard-hitting stories from around the country."
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