A international cinema chain is eyeing up the space at Hamilton's Centreplace following the departure of Event Cinemas at the end of November.
The Herald understands Reading Cinemas is in advanced discussions with Centreplace owners Kiwi Income Property Trust to take over the tenancy next year.
The move would beef up cinema competition in the city. The Wellington-headquartered business would be competing against Hoyts in Te Rapa and Event Cinemas in Westfield Chartwell.
Kiwi Income Property Trust development general manager Mark Luker said the trust was in discussions with a number of operators but didn't want to single anyone out.
"It's an opportunity for someone new in the CBD - it is the only opportunity for a major cinema operator to pursue."
He said discussions over the theatre were "business as usual", rather than part of Centreplace's redevelopment project which includes its new dining land, foodcourt and retail upgrade.
Event Cinemas general manager Carmen Switzer this week ruled out renewing its tenancy, this week saying the building's odd height and roof shape made it difficult to transform it into a modern cinema with stadium seating, big screens and surround sound.
Two fulltime and 24 part-time jobs will be lost when Event closes.
At the end of last month Victoria Cinema at the north end of the CBD also closed its doors, and Lido Cinemas is considering taking it over as a fourth satellite screen.
Reading Cinemas operate nine theatres throughout New Zealand including in Napier, Queenstown and Wellington.
Reading Cinemas management did not respond to calls from the Herald yesterday.