Tasmania's formal admission into the AFL last week has sparked renewed optimism for a Northern Territory team.

With Tasmania granted a licence to officially enter the competition in 2028, discussions have intensified around the Territory's bid to be the 20th AFL team.

Last year, a taskforce was established to determine the feasibility of the Territory entering a team into the elite competition.

Larrakia Development Corporation chief executive and current taskforce member Nigel Browne is hoping to build on the momentum of a successful Tasmania bid.

"Nobody wants a 19-team competition … the Territory should be the next cab off the rank," Browne told the NT News.

"The taskforce is pretty positive and motivated about what impact having that 20th AFL team (will have).

"To be honest, I haven't really come across anything negative. The only negative thing at the moment is figuring out how it's actually going to be done in terms of funding."

With Darwin's small population size of an estimated 132,000, it would pose a challenge in driving the revenue needed for the long-term sustainability and financial viability of an AFL club.

Included in any Territory team bid would be a proposal to build a new stadium.

Last year, details were revealed surrounding a proposed $300 million, 25-000 seat stadium in Darwin's CBD.

AFL Northern Territory chairman Sean Bowden has been a vocal supporter of a potential Territory AFL bid and believes that a new team and stadium will have many social and economic benefits.

"On top of our current football-focussed workforce of 45, a club would add up to 200 employees to the economy," Bowden said in NT News editorial late last year.

"We estimate a new stadium would generate about 70 full-time and 400 part-time jobs across 35 events a year."

Currently, the Gold Coast Suns play back-to-back home games at TIO Stadium during the middle of the season.

TIO Stadium has hosted AFL matches annually since 2004 and, since the building of the Michael Long Learning and Leadership Centre, has a capacity of around 13,000 people.

TIO Traeger Park in Alice Springs also hosts AFL games and would likely host matches if a Territory bid were successful.

The Northern Territory will face stiff competition for the 20th AFL licence, with media identity and former Collingwood president Eddie McGuire believing a third club from Western Australia could be considered.

"There is a consortium that wants to put a third team into Perth" McGuire said on the Eddie and Jimmy podcast, which he co-hosts with Geelong champion Jimmy Bartel.

"Because they have got the stadium over there, they've got to keep that rolling through."