The National Basketball League is set to expand into Tasmania after opening negotiations to buy a venue just outside Hobart.

League owner Larry Kestelman is in talks with the Glenorchy City Council to buy the Derwent Entertainment Centre (DEC) and nearby land at Wilkinsons Point.

"The NBL is looking to expand the competition and a 10th team in Tasmania is something we will now consider providing we can reach agreement with Glenorchy City Council on DEC and Wilkinsons Point," Kestelman said in a statement on Wednesday.

"Tasmanians are passionate about sport and crying out for more of their own teams in national sporting leagues and we believe it's something that fans are ready for and will embrace."

Kestelman said the new team would play NBL matches at the entertainment centre but will also look at shifting some home games to Launceston provided there is an appropriate venue.

The NBL is looking for the Tasmanian government to partner them in the proposal by providing finance to upgrade the DEC.