DENVER _ Denver has been selected to host the NBA's All-Star game in 2005, two league sources said Thursday.

Kroenke Sports, which owns the Denver Nuggets and the Colorado Avalanche of the NHL, has negotiated a licensing agreement to bring basketball's showcase event to the Pepsi Center, executive vice president David Ehrlich said. Denver last hosted the game in 1984.

"We feel good and we're thrilled about it," he said. The agreement is expected to be signed by next week.

Last month, the NBA said Denver would get either the 2005, '06 or '07 game and that a decision would be made during the NBA Finals.

NBA Commissioner David Stern has said the Pepsi Center, which opened for the 1999-2000 season, would be an ideal site because of Denver's abundance of hotels and proximity to ski areas.

The league sources spoke to The Associated Press on condition of anonymity. Denver's selection was first reported Thursday in the Rocky Mountain News and The Denver Post.

Ehrlich said city officials helped put together his organization's bid for the game, offering $400,000 toward expenses including security and rental costs. Total expenses will be more than $1 million and Kroenke Sports will pick up the remainder, he said.

The Denver Metro Convention and Visitors Bureau worked with hotels to offer special rates on the thousands of hotel rooms that will be needed during the event, Ehrlich said. Under the proposal, the city's convention center will also be used for the NBA's Jam Session.

The 2004 All-Star game will be held in Los Angeles for the first time in 21 years.