The Summerside Storm basketball team is making the move to Charlottetown, the team announced Sunday.
Darren MacKay, co-owner of the National Basketball League team, confirmed the news.
MacKay said the club signed a memorandum of understanding to play at the Charlottetown Civic Centre for the 2013-14 season.
"Our first responsibility as owners is to put the business in a position to succeed and sustain itself," said Storm co-owner Duncan Shaw in a statement. "It was a difficult, complicated decision but we feel that in the end the circumstances in Charlottetown are the best situation for the Storm to succeed in Prince Edward Island."
The Storm have played in Summerside since their league debut in 2011-12.
After struggling to a 12-24 record in their campaign, the Storm finished second in the Atlantic Division with a 26-14 record last season.
The club added in its statement that the decision was based on "increased access for corporate partnerships, which are critical to the team's survival."