But, if successful, South Melbourne will not take up the licence in a playing capacity and will establish a new identity for the team.
Teams from North Queensland and the Gold Coast are poised to join the league next season, taking it to 12 teams, while Melbourne and West Sydney have been pinpointed as likely targets for future expansion.
South Melbourne has now entered the new bidding process in partnership with "a variety of stakeholders from the Victorian football community", it intends making a big play to secure the second licence and would base the team at a redeveloped Bob Jane Stadium.
"The club is presently involved in preliminary discussions with Football Federation Australia and has been invited to present its formal proposal for the licence later this month," a statement said.
"As part of the bid process, the South Melbourne Football Club has appointed an A-League bid team to finalise and present the bid to the FFA."