The Relocation Committee, in a unanimous vote Monday, suggested to the NBA Board of Governors the Kings franchise not be moved, the league said in a release. The Board of Governors is to meet the week of May 13 on the issue.
The Kings were sold in January to a group headed by Chris Hansen and, at the time, it was expected the team would be moved to Seattle, which lost the SuperSonics to Oklahoma City in 2008.
But last month the Sacramento City Council approved a $258 million public subsidy financing for a new basketball arena, which would cost a total of $448 million.
Sacramento is the fourth home for the Kings franchise, which began play in 1945 in New York as the Rochester Royals. The team moved to Cincinnati in 1957 and then to Kansas City, Mo., changing the nickname to the Kings, in 1972, and splitting home games for a time with Omaha.
They were moved to Sacramento in 1985.
The Kings haven't qualified for the playoffs since 2006 and finished this past season 28-54.