The current franchise located in Nashville, the Kats, has been approved to move to Atlanta.
Adams is the eighth NFL owner to be approved for an AFL team. Most recently, Broncos owner Pat Bowlen and John Elway were approved for a team in Denver.
"We believe the Arena Football League team will be a great complement to our Titans organisation," said Adams.
"We want to play as quickly as possible, once a satisfactory venue is secured." The Kats had competed in the Gaylord Entertainment Center since 1997.
The AFL culminated its 15th season this past August, competing with a record 19 teams, including new franchises in Chicago, Detroit, Indianapolis, Long Island, NY, and Toronto, Canada. A record was established this past season when more than 2.4 million fans watched Arena Football games in both the AFL and arenafootball2.
The AFL is the second-longest running pro football league in the US in history, behind only the NFL.
In 1999, NFL commissioner Paul Tagliabue announced that the NFL agreed to purchase an exclusive option to acquire an equity interest of 49.9 percent in the AFL, subject to the approval of NFL owners. Currently, eight NFL owners, including the Cowboys' Jerry Jones, Broncos' Pat Bowlen, Lions' William Ford Jr, Jaguars' Wayne Weaver, Saints' Tom Benson, the York family of the 49ers, Redskins' Daniel Snyder and Titans' KS 'Bud' Adams Jr, have been approved for teams.
