Basketball Australia (BA) boss Larry Sengstock has confirmed the return of a Sydney-based side to an expanded NBL competition for the 2010/11 season.
However, there will be no team in the country's third-biggest city Brisbane for the third season in a row.
The unnamed Sydney team will join the existing eight teams - Adelaide 36ers, Cairns Taipans, Gold Coast Blaze, Melbourne Tigers, New Zealand Breakers, Perth Wildcats, Townsville Crocodiles and Wollongong Hawks - that contested the recently completed campaign in a brand new nine-team league.
While it is unclear whether the new Sydney franchise will operate under the Sydney Kings banner or an entirely different name, Sengstock described the group backing the club as a diverse collection of well-respected business identities with a passion for basketball.
"I am delighted to announce that the NBL will be back in Sydney next season, with a very strong consortium making a very strong case for BA to issue them with a licence," Sengstock said.
"Their application was unanimously endorsed by the NBL commission last night and as a result they will take their place in the NBL in season 2010/11."
"Whilst the people backing the new Sydney club have asked to remain anonymous for a little longer until they have had the chance to launch the team properly, I can say that the ownership group has impeccable credentials."
"They are also fully committed to making the Sydney team a long-term success both on and off the court, and have embraced the NBL's renewed community focus."
"This side will be a side for all of Sydney and will have very strong links to the community."
NBL commission chair Diane Smith-Gander didn't discount the inclusion of a team based in Brisbane in the near future.
"The NBL commission and the BA board are taking a controlled and strategic approach to expansion and are not rushing into additional marketplaces before the time is right," said Smith-Gander.
"We have Sydney now and that leaves Brisbane as the only major Australian market in which we don't have direct representation."
"We are continuing discussions with a group there and are confident that they will come to fruition, we are targeting the 2011/12 season, but we will not hamstring a team by rushing them into the competition before they are completely ready."
"We need to make sure that we only issue licenses to teams that can meet our criteria and that have the capacity to be successful in the long-term."
"Sydney and the other eight existing teams all satisfied the NBL commission that they deserved a license."