Tasmania's bid for a state-based AFL team is ready.

Sports Minister Michelle O'Byrne announced on Tuesday that cabinet had approved a submission prepared by sports consultancy Gemba and would send it to the AFL for consideration next month.

However, the AFL remains committed to awarding the two new licences to teams from the Gold Coast and western Sydney.

Despite this reality, hundreds of thousands of taxpayer dollars have been spent by the Tasmanian government pursuing what cynics consider a political folly.

O'Byrne said the submission was underpinned by a solid business case that showed Tasmania could sustain its own AFL team, in line with the AFL's criteria for an AFL licence.

"This includes stadium economics, revenue and expenditure, sponsorship, membership of the Tasmanian Football Club and crowds at Aurora Stadium," she said.

"This is an historic and exciting day for Tasmania and Tasmanian football."

Several companies have attracted publicity with sponsorship pledges for a Tasmanian-based AFL team, including $4 million from confectionary giant Mars.

The AFL has said it will accept the Tasmanian bid document, despite never having asked for it.

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