MINNEAPOLIS — The Minneapolis City Council approved an agreement with the Minnesota Timberwolves and Lynx on Tueday to renovate the Target Center, one of the NBA’s oldest venues.

The $97 million renovation of the 23-year-old, city-owned Target Center includes a redesign of the outdated exterior, additional clubs and gathering spaces, as well as improved traffic flow.

The Timberwolves and Lynx will pay $43 million toward the project. The city will contribute $48.5 million and building manager Anschutz Entertainment Group Facilities will pay $5.5 million. As part of the deal, the Timberwolves will extend their lease at Target Center through 2032.

The design of the building will take place this winter, with construction expected to begin after the 2013-14 Timberwolves season.