SAN JOSE — The San Jose Sharks appear to be on track to continue to play their home games at SAP Center — the same arena they’ve called home since 1993 — for at least another quarter-century.

The Sharks and the City of San Jose announced Saturday at a State of the City event at Arena Green Park that they are nearing a new lease agreement to keep the NHL franchise at the municipally owned downtown building for another 25 years.

If finalized, any new lease agreement for SAP Center would still have to be approved by the city council.

Financial details were unavailable, but San Jose Mayor Matt Mahan told Bay Area News Group the city will invest significantly in the 32-year-old facility as part of the proposed lease agreement. Mahan said he expects the deal to be approved by council next month.

“Sharks, for the last 30 years, you’ve helped define San Jose’s identity,” Mahan said at Saturday’s event. “I can’t wait to watch you continue to do so on and off the ice for the next 25.”

The Sharks, the arena’s primary tenant, say they’ve sunk tens of millions of dollars into the building but wanted the city to contribute to the cost of non-revenue-generating upgrades, including the facility’s aging plumbing and elevators.

“The things that matter the most are the things that fans don’t know or necessarily see every single day,” Jonathan Becher, president of Sharks Sports & Entertainment, told this newspaper. “That’s where the big emphasis is, on making sure this building can survive and grow and thrive for its 25 years.”

Mahan’s long-term goal is to create a downtown sports and entertainment district near the arena and expand the convention center so that the city can host more significant events.

In a short speech Saturday, Becher said, “We are thrilled to be finalizing a partnership with the city to reinvest in the SAP Center, so it can serve the next generation of San Jose residents and draw millions of visitors from all over the Bay Area, and beyond.

“We hope this is only the first step in what is possible in the Arena District around SAP Center.”

The Sharks have been eager to negotiate a new long-term lease agreement with the city. The present deal, signed in 2015, called for the Sharks to play their home games at the facility on a fixed term through July 1, 2025, with the lease renewing annually through 2040 thereafter.

Without a new deal, the city could have potentially charged the Sharks more each year to lease the arena. But Becher had become increasingly upbeat about negotiations, saying last month that, “We’re way past (being) pessimistic or cautiously optimistic. We will get something done.”

Becher said SS&E had contingency plans for a new home rink in case negotiations with the city on a new lease agreement at SAP Center fell through. However, the organization, led by owner Hasso Plattner, always wanted to remain at the arena, dubbed the Shark Tank, which has a seating capacity of 17,435 for hockey.

“In the last year and a half, with the newer City Council and Matt (Mahan) as the mayor, there’s been a focus on the things that actually matter to both sides,” Becher said. “And things have come together quite quickly over the last year, and this has been a win-win where everyone has been focused on one thing, which is, how do we deliver world-class events, not just hockey games, to a city for another 25 years, not just for the last 30.”