The multi-millionaire owner of the National Basketball League is set to enter into an exclusive negotiation period with the Glenorchy City Council to buy the Derwent Entertainment Centre.

Key points: NBL owner Larry Kestelman plans to enter an exclusive deal with Glenorchy City Council to buy Tasmania's Derwent Entertainment Centre

NBL owner Larry Kestelman plans to enter an exclusive deal with Glenorchy City Council to buy Tasmania's Derwent Entertainment Centre The ABC understands Kestelman wants to buy the DEC to base a Tasmanian NBL team out of a refurbished stadium

The ABC understands Kestelman wants to buy the DEC to base a Tasmanian NBL team out of a refurbished stadium It's unclear who would own the licence for a team or when a side could take to court

The ABC understands Larry Kestelman, who has owned the National Basketball League since 2014, wishes to purchase the Derwent Entertainment Centre (DEC) and Wilkinson's Point area for development, and base a Tasmanian NBL team out of a refurbished stadium.

Kestelman, who co-founded internet provider Dodo, is one of Australia's richest people, worth approximately $800 million.

National Basketball League owner Larry Kestelman took control of the NBL in 2015. ( ABC News: Mary Gearin )

A formal announcement from the Glenorchy City Council is expected in the coming days.

The sale of the DEC to the National Basketball League would all but confirm a Tasmanian team entering the national competition, but it's unclear as to who will own the licence for a team and when a side could take to the court.

Kestelman has met several times with the Glenorchy City Council and the State Government in the past few months, sparking speculation a Tasmanian team could be co-owned and operated by the Government and the league.

Last year, the Southern Huskies basketball consortium led by tech entrepreneur Justin Hickey and business partner Mike Sutton expressed interest in joining the league, and made an unsolicited bid to buy the sport and entertainment precinct.

But a falling out over the valuation of the centre with the council saw the Huskies withdraw their interest in purchasing the stadium.

The Huskies have since joined the New Zealand NBL where they hold a five-year licence agreement.

In April, the council voted unanimously to combine the nine-hectare Wilkinson's Point parcel of land with the Derwent Entertainment Centre in a bid to maximise the site's appeal to prospective buyers.

The NBL is looking to rapidly expand its competition and brand.

A licence has already been granted for a South-East Melbourne team, while the Illawarra Hawks and the New Zealand Breakers have landed high-profile American prodigies LaMelo Ball and RJ Hampton for the upcoming season.