Tasmania will officially host a NBL team for the 2021/22 season after the league issued a license to the Tasmanian Government.
The agreement will see Tasmania host they're own team for the first time in 25 years.
As part of the agreement, the Tasmanian Government will provide $68.5 million -- $20 million of which will go to a new community four court multisport facility -- for upgrades of the Derwent Entertainment Centre, the side's new home arena.
Tasmanian Premier Peter Gutwein said the new team and construction will provide significant benefits for the state.
"This development will unlock significant economic development, attract investment and create hundreds of jobs," Mr Gutwein said.
"This is how we're rebuilding Tasmania, building on our strengths and providing opportunities for Tasmania including national league participation, to create new jobs, future investment and economic development.
"We're proud to be a major sponsor of a Tasmanian NBL team and the opportunities it provides for grassroots pathways and player development in our state."
NBL Owner and Executive Chairman Larry Kestelman was excited to finally have the agreement signed and begin the development of the NBL's newest team.
"This is great news for the Hungry Jack's NBL and the people of Tasmania who have showed amazing passion to help bring this to life," Kestelman said.
"The final agreement means we can start immediately on the next steps for the planning and upgrade of the DEC in preparation for a Tasmanian team to take to the court for the start of the 2021-22 season.
"Basketball is a global sport and the NBL team will showcase Tasmania on the national stage and around the world.
"In parallel with the upgrade to the DEC, we will now begin the process of building the club. This will include engaging with the local community to help choose the name as well as starting the recruitment of people to lead the club into the future.
"We will be looking to immediately recruit a CEO to lead the club and we will work closely with the Tasmanian Advisory Board and the local community to establish a team that all Tasmanians can be proud of, on and off the court.
"We have been encouraged by the interest from corporate Australia in becoming foundation partners of the Tasmanian team. We will progress those discussions in coming months and look forward to major Tasmanian brands getting behind their team."