Detroit may become the next US city to enter a franchise into Major League Soccer (MLS) as part of a US$1bn (£685.2m, €866m) investment plan devised by two National Basketball Association (NBA) owners.

Detroit Pistons owner Tom Gores and Cleveland Cavaliers boss Dan Gilbert announced plans to build a 20,000-seater stadium in the downtown area of the city.

The development – which is being designed by architecture studio Rossetti – will include mixed-use facilities for sport, entertainment, hospitality and retail. Four towers containing hotel, residential and office space will also be included alongside the proposed franchise’s training facility.

Rossetti founder Matt Rossetti said: "Central to the project’s design is porosity and creating an uninterrupted experience between the public realm and physical buildings. In it, we explore how to unite cities with nature, people with habitats, sports with culture. We endeavour to have all anchor developments facilitating pedestrian movement horizontally and vertically through a ‘green belt’ podium.

Detroit mayor Mike Duggan has thrown his weight behind the bid and said he was “looking forward to working with anyone who is committed to making the idea of an MLS franchise in Detroit a reality”.

“Detroit is rising and we know first hand the power of sports to lift a community and drive a civic renaissance,”said a statement made by Gores and Gilbert. “Bringing a team downtown will also further energise Detroit’s urban core, which is critical to the entire city’s overall health and vibrancy.”

The pair revealed that they wanted to “build an ownership group” which “represented a cross-section of investors”.