A new purpose-built basketball arena is being lined up for the district of Los Angeles where the US$1.9bn LA Rams American football stadium is currently being built.

National Basketball Association (NBA) franchise the LA Clippers has entered into a negotiating agreement with the City of Inglewood to explore the development of the venue, alongside training facilities and team offices.

As part of the agreement, the Clippers will have three years to formulate is plans.

According to the franchise – which has been playing the the downtown Staples Center since 1999 – the new arena will be “100 per cent privately funded”.

In a letter to Clippers fans, owner Steve Ballmer said the new arena would allow the team to offer a “premium experience” in terms of technology and amenities.

The former Microsoft chief executive – who is worth US$35bn – added that the team would continue to play at the Staples Center until at least 2024 when its lease expires.

However, if a move is approved by the local authority, the arena will be built in close proximity to the Los Angeles Stadium and Hollywood Park, being developed in Inglewood for the LA Rams.