The Adelaide Oval hotel would enable Virat Kohli's side to isolate safely while being able to train in first-class cricket facilities.
A warm-up match between the two teams at the venue is also being discussed, reports the Sydney Morning Herald.
According to the hotel website, the 138-room Oval Hotel – which is being built and managed by the Adelaide Oval Stadium Management Authority, in which SA Cricket has a 50 per cent stake – is expected to open in September.
Cricket Australia managed to complete most of its international schedule before lockdown but has been tight lipped about next summer's matches so far.
The Twenty20 World Cup, which is due to start on October 18, has also had serious doubts about whether it will go ahead.
Cricket Australia is reportedly seeking a $200 million line of credit from banks as it anticipated a fall in revenue.