Cricket Victoria plans to merge the Stars and Renegades into one 'Melbourne' team and sell its second BBL licence to a private investor.
The shake-up is subject to approval of Cricket Australia's plans to allow a phased sale of stakes in BBL clubs by state associations.
Cricket Victoria (CV) staff were told of the move on Tuesday afternoon.
In a statement, CV confirmed it would begin preparations for an expressions of interest phase with an eye to selling one of its two licences.
"We have a responsibility to ensure Victorian cricket remains strong, now and for the future," CV chair Ross Hepburn said.
"This process gives us an opportunity to explore new investment that could strengthen the game at every level and ensure cricket continues to thrive across the state for generations to come."
