PITTSBURGH — The owners of the Pittsburgh Penguins said they will meet with state and local leaders to discuss how to fund a new arena in the city and possibly avoid moving the team elsewhere, according to a newspaper report.

Penguins owners Mario Lemieux and Ronald Burkle wrote a letter Thursday to Gov. Ed Rendell and other officials agreeing to a meeting sometime next week, a Pittsburgh newspaper reported on its Web site Thursday.

"It is essential for the future of this franchise that we negotiate an arena deal that makes economic sense for the long term," the owners wrote in a letter obtained by the newspaper.

The letter was sent in response to a request from Rendell and local officials to meet next week when the governor visits the city.

Last week, Lemieux said his ownership group would explore moving the Penguins to another city, among other options. The announcement came a day after state regulators denied a slot-machine license to Isle of Capri Casinos, which had promised to build the Penguins a $290 million arena at no cost to the team or taxpayers.

Instead, Detroit casino developer Don Barden got the license. Barden has pledged $7.5 million annually for 30 years toward an arena in a so-called Plan B proposal put forth by the city and county. Plan B includes state development funds and a yet-to-be-negotiated contribution from the Penguins.

The Penguins' current home is Mellon Arena, a 45-year-old building the team says must be replaced for it to remain viable in Pittsburgh.