Moncton Wildcats owner Robert Irving is pleased an agreement has been reached to keep the hockey team in the Moncton Coliseum. (CBC)

A deal has been hammered out between the Moncton Wildcats and the city of Moncton that will keep the hockey team in the Moncton Coliseum.

The city announced Wednesday that it has signed a three-year deal with the team.

The Wildcats have the option for a 15-year deal if a new facility is built.

"We're very pleased that we've been able to come to an agreement with the city for a three year deal for the Coliseum," Wildcats owner Robert Irving said Wednesday.

"As well, we signed a memorandum of understanding that if there ever is going to be a new rink built in Moncton, that we have a 15-year arrangement."

Irving said the two sides were able to meet in the middle after being deadlocked on the new contract.

"I think that both parties looked at what were the challenges and what we had to do to find an arrangement that both parties could live with, and I think we did that," Irving said.

Last month, Irving said he was having trouble getting a lease on the 40-year-old Coliseum. He said the city wanted to squeeze more money out of the popular Quebec Major Junior Hockey League team

The team had been without a lease agreement for the coliseum for over a year. At one point, Irving said he would consider selling the team if a deal couldn't be reached.

The Wildcats galvanized the city behind the hockey team this spring during the QMJHL playoffs when they emerged as league champions.