CALGARY, Alberta -- The Calgary Flames and city officials said Wednesday they will restart negotiations for a new arena.

Their previous deal, agreed upon in 2019, collapsed late last year when the estimated cost of the project rose and the Flames withdrew. In January, the city hired third-party negotiators to resurrect the project, and those efforts led to Wednesday's announcement.

The Flames have played for 39 years in their current home, the Saddledome, the second-oldest NHL arena behind New York's Madison Square Garden.

"All parties share a collective desire to see a new event center constructed in Calgary. We look forward to discussions with the city to see if we can find an acceptable path forward," Calgary Sports and Entertainment Corp. president and CEO John Bean said in a statement released by the city.

The city envisions building the new arena on a parcel of land north of the Saddledome as part of a revitalized commercial and residential district on the east side of downtown.