Canberra will be part of the Australian Ice Hockey League (AIHL) in the 2014 season with the team to be known as CBR Brave.

It comes after the news last week that the Canberra Knights would be folding before the scheduled start of the winter season for financial reasons.

Former Knights captain Mark Rummukainen led a vocal campaign to save the side.

The AIHL has granted provisional licence to CBR Brave for 2014 but it must prove to be financially viable and competitive to continue.

In a statement the AIHL said there was a compelling argument for the Canberra team to return to the competition especially after support from fans raised over $27,000.

Mr Rummukainen says starting the new team has taken a lot of hard work in a short space of time.

"It's unbelievable, everyone is jumping out of their skin and so happy," he said.

"We know there's a lot of hard work to go but the first hurdle is done."

The team's annual budget was estimated by previous team manager John Raut to be about $150,000 to cover expenses including uniforms, travel, accommodation, ice rink bookings and international transfer fees.

Mr Rummukainen says the team is still chasing some sponsors to help them get over the line before the first game.

"I've just been told we had $10,000 plus of game day sponsors come on today," he said.

"So the sponsors coming on board gives us more finances to take the pressure off our shoulders a little bit."

"We've also looked at other methods of getting to Melbourne and Sydney."

The team has agreed to continue training and playing at the Phillip Ice Skating Centre.