Albuquerque Mayor Richard Berry and Albuquerque Balloon Fiesta officials say the City Council and the festival's board will be asked to consider a new 15-year agreement for staging the event at a city park.
The preliminary agreement announced Friday would replace one that was signed in 1997 and that expires at the end of this year.
The balloon festival is a signature event for Albuquerque, and city leaders consider it a significant economic boost.
The festival attracts hundreds of hot-air balloon pilots and is attended by hundreds of thousands of spectators.
Terms of the preliminary agreement include providing new opportunities for local vendors and shortening the period for the festival's exclusive use of the park to 60 days from 90 days.
Copyright 2012 The Associated Press.