The AFL and Tasmanian government have agreed "in principal" to key commercial terms for a 19th license in the league.

AFL chief executive Gillon McLachlan flew to the Apple Isle this week to speak with key figures of Tasmania's bid to become the next AFL club, with state premier Jeremy Rockliff revealing progressive talks between the two parties were held.

In a post to social media from Rockliff's team, the premier was quoted in revealing exciting news "before it hits the press".

"I have some news to share with you all before it hits the press," Rockliff said in a Tweet on Friday.

"We have reached an in principal agreement on the key commercial terms to bring a Tasmanian team into the AFL. In our colours, singing our song.

"Some more work still needs to be done, but make no mistake, we will get our standalone team and finally take our rightful place in the national league.

"Tasmania is on the move."

Negotiations between Tasmania and the AFL have been ongoing for over a year, with the island state pressing as the most enticing expansion option for the league to consider.

Once given the green light by the AFL, a Tasmanian team could officially enter the competition as early as the 2024 season. However, a more realistic time slot is set for 2025 or beyond.

A key sticking point in negotiations had been related to the state government's finances to plan, fund and construct a new boutique stadium that will host AFL matches.