Glendale approved a 5-year deal Tuesday to replace the Arizona Coyotes as manager of the Gila River Arena. 

The Glendale City Council voted 7-0 to approve an agreement that will pay AEG Management Glendale LLC $5.6 million annually to run the city-owned arena at the Westgate Entertainment District. 

“This is a great step forward for all of us,” Glendale City Councilmember Lauren Tolmachoff said of the new management agreement.

AEG will have the right to negotiate a deal to try to keep the Coyotes as the anchor tenant at Gila River Arena. 

The team’s deal to play more than 40 games each season in Glendale expires at the end of the 2016-17 NHL hockey season. 

AEG could take over the arena management as early as July 1.

The Coyotes organization, the current arena manager, is considering moving the team to other Valley locations.

Glendale terminated its previous $15 million agreement with the Coyotes last year and approved a new deal in July that keeps the team playing in Gila River Arena for the 2016-17 season. Glendale is paying the Coyotes $6.5 million this fiscal year to manage the arena.

Glendale will pay Los Angeles-based AEG $2.8 million on July 1 and make subsequent $1.4 million payments on Oct. 1 and Jan. 1. 

The contract gives Glendale the right to an annual audit of the arena manager. 

AEG could terminate the agreement with Glendale if the Coyotes move out of Gila River Arena. 

Any profit from the arena will be split between AEG and the city for the first $3 million. AEG would then get 75 percent of any additional profits and the city’s share would be 25 percent.

AEG operates a number of arenas in the West, including the Staples Center in Los Angeles and owns the Los Angeles Kings of the NHL. 

Glendale stands to lose $500,000 in annual rent from the Coyotes and $420,000 in naming-rights revenue each year, said former Glendale councilmember Gary Sherwood. 

Glendale will keep its luxury suites in the arena under the new agreement.