IT and property entrepreneur Larry Kestelman has 120 days to come up with an offer for the Derwent Entertainment Centre.
Glenorchy aldermen voted unanimously in favour of talks with the NBL owner at Monday night's council meeting.
Mr Kestelman, one of Australia's richest men, is envisaging an investment of up to $200 million for a new sports and entertainment precinct, also including retail accommodation and food and beverage offerings.
It's the crucial next step towards locking in an NBL team for Tasmania, but any sale of the regionally-significant venue will also need the tick of approval from the State Government.
Glenorchy Mayor Kristie Johnston says Council has committed to public consultation, also pledging that public access to the Wilkinsons Point foreshore will be preserved.
"The negotiation starts today," she said.
"We've had very productive discussions with Mr Kestelman to date, and with the State Government.