German sports club Bayern Munich and energy drinks company Red Bull are reportedly planning to collaborate on a new multi-purpose stadium.

According to various reports, the two parties plan to convert the existing Olympic Velodrome in Munich into a 10,000-capacity facility. Initial plans place the total cost at $106m (€99.1m/£86m), with work scheduled to be finished by 2019.

The renovated venue would serve as the new home for the Bayern Munich club basketball team, as well as professional ice hockey outfit EHC Red Bull Munich.

Red Bull founder Dietrich Mateschitz said that all construction costs would be recompensed through rental income generated by the facility. The Austrian added that Bayern Munich president Ulrich Hoeness has given his full backing to the planned initiative.

Bayern’s basketball team currently play at the 6,700-capacity Audi Dome.