The Arizona Coyotes announced Monday afternoon that the team has entered a negotiation agreement with a local developer to finalize a new arena.

The NHL franchise is working with Catellus Development Corporation, master developer for the Arizona State University Athletic Facilities District, for the 16,000-plus seat building - part of a bigger commercial development - to be built along nearby nearby Tempe Town Lake.

"We are thrilled to partner with Catellus on this tremendous project that will include our future new home in the East Valley," said Coyotes Majority Owner, Chairman and Governor Andrew Barroway in a statement. "The Coyotes are committed to Arizona, and we are extremely excited about our bright future."

ESPN.com NHL writer Scott Burnside reports that the arena should be ready for the start of the 2019-20 NHL season.

According to Burnside, the team is also expected to extend its current lease at Glendale's Gila River Arena until they move into the new building.

The Coyotes were looking at several new locations near Phoenix and Scottsdale after the franchise's relationship with the City of Glendale - which built and owns Gila River Arena - took a downturn.

The team has played at Gila River Arena for the last 17 seasons after playing at America West Arena in downtown Phoenix from 1996 to 2003. The NHL owned the Coyotes for four seasons after the franchise declared bankruptcy in 2009 and the team was eventually taken over by businessman Andrew Barroway.