The franchise management group met last night to discuss the issue and begin planning for the 2014 season.
However, Basketball Otago general manager Markham Brown said the job had not been advertised and the general consensus was that Arlidge was likely to be offered the position.
''We have not advertised it yet and I guess we are deciding whether we are going to keep Alf going,'' Brown said.
''I think the feeling is pretty positive about keeping him going. The team has been on the rise and so we are pretty keen to give it the opportunity to keep doing that.''
Arlidge has coached the Nuggets since 2010 and guided them to the playoffs last season.
It was the first time the franchise had qualified for the post-season since 1997.
The Nuggets fell short in the semifinal against the Nelson Giants, losing 87-72.
But the franchise won its opening eight games and there was a large groundswell of support for the team.
The Nuggets regularly drew crowds of 2000-plus and Brown said the organisation was determined to capitalise on that momentum and make a push for the title next year.
However, he said finances were still tight and it was important to balance ambition with financial prudence.
''Basketball is in a real golden era at the moment with Steve Adams doing so well. The Breakers have gone well over the last three years and the numbers are growing in the game and three-on-three is set to take off.
''And, obviously, it was good here as well and we've had some good results with age-group teams. So it is about trying to keep the sponsorship maximised and give ourselves every opportunity to keep a really good team on the court to have a chance at a championship.
''We are definitely ambitious ... but we're always trying to make sure it is sustainable. We're always having to make sure we make enough money before we spend it.''
Basketball Otago's annual general meeting is on October 30 and Brown said the organisation would report a modest loss of $15,000. However, it is for the financial period ending on December 31, 2012.
''[Since then] we've had a good year with the Nuggets and we've had many areas of growth but the funding market has been quite tough.
''We're working hard but there is not going to be a big profit but we don't want it to be a loss either. Basically, we're working hard to break even at the moment.''
The gaming machine funding ''has taken more of a dive this year''.
The Nuggets' major naming sponsor, Oceana Gold, extended its three-year deal by 12 months last season and is reviewing its position regarding a future arrangement.
Brown said discussions with the Oceana Gold had been positive and he was hopeful an agreement would be reached.
The National Basketball League is expected to start earlier next year, possibly in late March-early April rather than in mid-April.
Brown said the league was working on a draught draw and it should be released in the next week or two.
