The NBL has confirmed that the ninth team in the competition will be based in south east Melbourne.
The yet to be named franchise will play games at Melbourne Arena starting in the 2019/20 season.
"This is an exciting moment for the NBL as we announce a second team in Melbourne," NBL chief executive Jeremy Loeliger said on Sunday.
The NBL announced in July that Romie Chaudhari, co-owner of English Championship soccer team Swansea City, had been awarded a licence.
"We said when we granted the licence for a ninth team that its location would depend on having access to first class training, administrative and playing facilities," Loeliger said.
"The investment in the State Basketball Centre and Melbourne Arena makes south east Melbourne the ideal location for the next NBL team."
A deal has been agreed to move the Australian Basketball Centre of Excellence from Canberra to Melbourne's south east - with the Victorian Government on Sunday committing $82 million funding for expansion of the State Basketball Centre if re-elected and Knox City Council promising $25 million to the expansion project.
The Victorian Government will also add a further $13 million to upgrade Melbourne Arena if re-elected.
The newest NBL team will be based at the State Basketball Centre and play two regular season games there each season once the planned expansion has been completed.
"We are delighted to have chosen south east Melbourne as the location for our club," Tommy Greer, general manager of the team, said.
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