Events in the news this week.

The Anaheim City Council on Tuesday is scheduled to decide whether to grant an extension to a group hoping to build a $50-million sports arena in the city. City officials and the development group have identified two potential sites, one downtown and one near Anaheim Stadium, but had failed to reach a final decision on a location by a Dec. 30, 1988, deadline and requested the extension.

City officials hope to draw a professional basketball team to the proposed 20,000-seat arena by the 1991 season. The National Basketball Assn. rejected Anaheim’s bid for an expansion team in 1987, largely because of the lack of a suitable arena, but sources familiar with those talks said that NBA officials virtually promised Anaheim a team if it builds a new arena.

If the extension request is approved, a full report with final recommendations on a location would come back to the City Council in March.