Speculation is running hot in St. John's that the American Hockey league could be on the verge of returning to the city.

A local newspaper, The Telegram, has reported that the league will set up shop in St. John's if the NHL's Atlanta Thrashers re-locate to Winnipeg.

An announcement on that transaction is expected on Tuesday.

St. John's was the home to the Toronto Maple Leafs AHL farm club from 1991 to 2005.

City councilor Danny Breen told CBC news Saturday that nothing has been officially confirmed but there is a real possibility the move could happen.

"This is a significant opportunity for the AHL to return to St. John's and, you know, we're certainly going to do everything we can to ensure that it happens,"  Breen said.

Breen would not speculate on rumours that former premier Danny Williams could be a prospective owner of the team.