Star confirmed it had entered into an exclusivity and process deed with Salter Brothers Capital, after hinting at the $940 million refinancing proposal earlier in March.
"(The Star) received a refinancing proposal which has the potential to provide total debt capacity for the group of $940 million," Star's board wrote to shareholders.
"Which, if finalised, would provide the Star with sufficient liquidity to refinance all of the Group's existing debt."
Star's board provided no further details of the deal, which was still in the works.
Star's shares have been in a trading freeze for more than a week after the casino operator failed to sign off on a financial statement, as it continued to seek solutions to refinance more than $400 million in debts.
The group's fortunes have been plagued in recent years by money laundering scandals, licensing headaches and sliding revenues.
Despite its precarious financial situation, Star has been bombarded with refinancing offers and has a number of options on the table.
Over the weekend, Star struck a $53 million deal to offload its stake in the Queen's Wharf Brisbane entertainment precinct, a project that has faced its own short-term liquidity challenges.
The deal absolved Star of its share of the $1.6 billon debt accrued by the project.
US casino giant Bally's on Monday offered to underwrite a $250 million capital raise in return for a controlling, 50.1 per cent stake in the Star.
Bally's owns and operates 19 casinos in the US and has a track record in turning around struggling operations.
Star's board has said it would consider the unsolicited offer, in which Bally's noted it was not a lone suitor.
"While we understand the rationale for Star's recently announced transactions, we believe that our proposal offers Star and its stakeholders far greater value and operational flexibility, as well as the upside from retaining Star's current projects and other assets," Bally's chair Soo Kim wrote.
Earlier in March, Star signed a $250 million senior secured bridge facility with King Street Capital Management.
The trading freeze on Star shares is likely to extend for at least another week as the company's board and executive team mull options for the company, which employs more than 8000 staff.
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