A major retail precinct adjacent to the DEC has been confirmed, with work to start next month ahead of the admission of the Tasmanian NBL team for the 2021-22 NBL season.

The redevelopment is being funded by a $68.5 million package by the State Government including a $20 million four-court indoor multi-sport facility.

NBL owner and executive chairman Larry Kestelman said he expected the retail precinct to "attract a lot of interest from local retailers" as it will enjoy "prime location on Brooker Highway with easy access to the DEC and a short distance from MONA".

"The DEC will be transformed into a world class venue for Tasmania, hosting NBL games in front of over 4000 fans and feature first class corporate facilities, state of the art audio-visual experiences and brand new amenities for families," he said.

"The new DEC will also host concerts featuring performers from Australia and around the world in front of over 8000 people as well as conventions and other major events for Tasmania."

Team Tasmania chief executive Simon Brookhouse said the redevelopment would put "Tasmania on the national and international stage with its own NBL team" and "we look forward to building a great team all Tasmanians can be proud of".

The name of the new team will be announced on October 1 along with the launch of the team's foundation memberships.

Just three options remain in the countdown to revealing the team's name, Tasmania Tridents, Tasmania Pride and Tasmania Jack Jumpers, after five were initially revealed on the state's short list.