The Glendale City Council voted unanimously Tuesday night to approve a memorandum of understanding from a group that wants to buy the Coyotes and keep them in town.
The memorandum gives Ice Edge Holdings, a group of Canadian and U.S. investors, exclusive negotiating rights over the next 60 days for a new arena lease.
A new lease is a necessary step toward purchasing the team from the NHL, which bought the club out of bankruptcy last September.
Glendale officials say the memorandum will be forwarded to NHL officials for a final decision.
A group headed by Jerry Reinsdorf, owner of the Chicago White Sox baseball team and Chicago Bulls NBA team, withdrew from efforts to purchase the Coyotes on Monday, leaving Ice Edge as the only potential buyer.
Once a new arena lease is in place, the NHL would determine if Ice Edge should be allowed to complete the purchase.