Christchurch City Council is looking to buy the World Buskers' Festival, an annual event the city has hosted for 15 years.
Each January international and national performers attract thousands of visitors to Christchurch.
Organisers said this year's two week festival generated more than $3 million dollars.
Christchurch Festival City Trust chairperson Ken Franklin said while the trust currently owns the event it makes sense for the council to buy it.
"If this transaction is able to proceed then I think it's a fabulous outcome for everyone, because not only do we get the security of the event in the long-term but also we get the potential opportunity to expand the event and extract greater value out of it," he said.
The possible purchase is up for discussion at Friday's council meeting though the debate is closed to the public.
If the sale goes ahead, it would be the second major event owned by the council, which last year bought the Ellerslie Flower Show for an undisclosed sum.
