The Washington Wizards and Washington Capitals are set to remain in Washington D.C. instead of relocating to Virginia.

Ted Leonsis, the majority owner of both franchises, and D.C. Mayor Muriel E. Bowser are finalizing a deal that, if approved, would keep both the Wizards and Capitals in the city until 2050, per Jonathan O'Connell, Teo Armus, Gregory S. Schneider and Michael Brice Saddler of the Washington Post.

Under terms of the agreement, the city would spend $515 million over three years to make upgrades to Capital One Arena, per the Washington Post. Leonsis would then sign a new lease to keep both teams in D.C. for the next 25 years.

The Washington Post added of the deal:

"The agreement includes other provisions that address some of Leonsis's concerns about the state of downtown and allow his company, Monumental Sports and Entertainment, to additionally expand in the city.

"Among the provisions to which the two sides have tentatively agreed, D.C. would allow Leonsis to take over management of the Mystics home facility in Southeast D.C., utilize parking at some District-owned buildings for Monumental employees, keep a minimum number of police officers downtown and plan for a new future downtown practice facility for the Wizards."

The news comes after the previous plans to move were changed earlier in the day.

The city of Alexandria said Wednesday that talks to move both the NBA and NHL franchises from Washington, D.C., to Virginia had "ended" and that the proposal to create a new arena for the teams "will not move forward," per Sarah Rankin and Matthew Barakat of the Associated Press.

Virginia House Speaker Don Scott was told by Alexandria Mayor Justin Wilson that Leonsis was no longer considering relocation from Washington, D.C., per the Associated Press.

"We negotiated a framework for this opportunity in good faith and participated in the process in Richmond in a way that preserved our integrity. We trusted this process and are disappointed in what occurred between the Governor and General Assembly," the city of Alexandria said in a statement.

Leonsis announced in December plans to build a new arena at Potomac Yard in Alexandria as part of a $2 billion mixed-use development project with retail space, hotels and a music venue/convention center.

The announcement came after Leonsis asked D.C. for $600 million of public funding for a major renovation project at Capital One Arena that included moving more seats closer to the court/ice, a food court and a new entrance.

Bowser in December offered up $500 million over three years for upgrades to the arena and to keep both franchises in the city. However, Leonsis and Bowser were initially unable to come to terms on an agreement and Leonsis quickly announced plans to move both teams to Virginia.

Leonsis' Monumental Sports and Entertainment has a lease at Capital One Arena through 2047 and D.C. Attorney General Brian Schwalb told the company last week it has an obligation to remain at the arena through the end of that lease.

The Wizards and Capitals have played at the 20,000-seat Capital One Arena in Washington, D.C., since December 1997.

Moving the franchises to Virginia would have been devastating for downtown D.C. as Capital One Arena hosts 84 games per year between both teams and brings in thousands of fans to the surrounding area businesses.