The Examiner understands it has all but signed off on two games a year at Bellerive Oval, with taxpayers to chip in $300,000 a match.

Businesses and a consortium of Southern Tasmanian councils would each contribute a further $150,000.

North Melbourne, which was close to reaching a Tasmanian deal last year, is the most likely Bellerive tenant.

An announcement is likely within a week.

A Kangaroos spokesman said last night that the club wouldn't comment on its involvement in any deal before an announcement was made.

The Bellerive deal would be in addition to the government's five-year sponsorship of Hawthorn, which plays at least four games a year at Aurora Stadium in Launceston.

It comes at a time of deep financial trouble for the state government, with public servants awaiting news of expected job losses under state budget cuts.

A spokesman for Premier Lara Giddings last night denied that a deal had been done, but said discussions were ongoing.

"The state government is working with local councils, the TCA, local businesses and AFL Tasmania with a view to bringing AFL matches to Bellerive Oval," she said.

In a government brochure distributed at a community forum at Lauderdale this month, the Premier said the government was prepared to make a financial contribution to AFL in the South.

"We are working with stakeholders to determine what level of financial support is required," she said.

"As the benefits are spread across the community, the government should not be left to foot the bill on its own."

That represents a dramatic change of tune for the government, which last year rejected a 10-year, $70 million offer to bring North Melbourne to the state for seven games a year.

Then-premier David Bartlett met Kangaroos president James Brayshaw and said the government was not opposed to scheduling games at Bellerive.

"But it will not be funding those games," he said.

A month earlier, Tourism Minister Michelle O'Byrne told a budget estimates hearing the same thing.

"We will not be entering into any arrangements of sponsorship or underwriting of games at Bellerive."

AFL Tasmania chief executive Scott Wade said he was involved in ongoing negotiations, but wasn't privy to the finance.

"But it's progressing extremely well and I'm quite confident a deal can be secured," he said.

Clarence Mayor Jock Campbell said recent discussions suggested that the cost would be shared equally among government, business and the councils.

Mr Wade confirmed that each game was likely to cost around $600,000 based on the AFL's benchmark match fee.