The new league's backers have proposed a six-team league of privately owned franchises and hope to launch the first tournament by January 2027.
NZC said its board had given in-principle support for NZ20 contingent on resolving key commercial, governance and structural matters.
"While not a final commitment, the decision allows the board to focus resources on negotiating a potential licence and binding commercial arrangement with the NZ20 organisers," NZC said.
NZC board chair Diana Puketapu-Lyndon said the board wanted to see several changes to the NZ20 proposal.
"We want to work with NZ20 to ensure it incorporates and supports the women’s domestic T20 competition, and that it maintains a level of prominence and visibility consistent with NZC’s strategic commitment to the women’s game," she said.
"Ensuring regional representation of NZ20 teams so fans and aspiring young cricketers can see their heroes in action is also very important to the Board, as is the question of ownership and control, including equity in the competition."
NZC said it had weighed a potential move to join Australia's men's and women's Big Bash League T20 competitions but decided against it.
"There was extensive discussion on the merits of these proposals, but the Board concluded that now's the right time to revitalise our 21-year-old Super Smash competition," Puketapu-Lyndon said.
