Once established, the entity would have to be officially recognised by the International Cricket Council (ICC) and the British Olympic Association (BOA) before becoming a full member of the National Olympic Committee (NOC).
Sources have told BBC Sport that a deal in principle has been agreed with the ICC.
A memorandum of understanding (MOU) will be put in place to allow Northern Irish players to participate for GB Cricket.
England ODI and T20 captain Harry Brook said: “That would be pretty cool to be able to play in the Olympics and get an Olympic gold medal.
“But it’s so far away. It’s miles away yet.”
In LA six teams in both the men’s and women’s category will compete in a T20 format.
The qualification process has not been announced by the ICC, but it has been agreed that England’s men’s and women’s teams will aim to qualify on behalf of Team GB.
Scottish and Northern Irish players would then be available for selection should GB qualify.
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