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."
The new team is reportedly set to be called 'Melbourne' and will wear navy blue, playing home games at the MCG, while the nickname 'Bushrangers' has previously been floated.
That would be a throwback to the nickname Victoria previously used in state-based men's competitions.
It remains unclear whether the Stars and Renegades will compete under their current brands in the 2026-27 BBL season, though Cricket Australia CEO Todd Greenberg said in April it would be business as usual for the coming campaign.
Any sale of BBL licences would also need approval by the Australian Cricketers Association, which is understood to still be some way from happening.
CA's privatisation plan for the BBL stalled in late April when Queensland and NSW torpedoed the original proposal.
South Australia was interested in a hybrid proposal, while Victoria, Tasmania and Western Australia were keen on bringing in private investors.
"Option A for us has always been ... that we do it at the same time to extract the maximum value in the market," Greenberg said at the time.
"But clearly we're not at that point, so we now have to reassess what comes next.
"We've just moved to trying to analyse what a different model might look like, and is there a model where some states are taking private capital and some states aren't?
"We would have to get some deep analysis to understand the impacts on Australian cricket.
"Because to do this, it needs to benefit the entire sport, and we have to look at that lens in the decisions that we make."
12°C