The NBA has decided to pull the 2017 All-Star Game from Charlotte over North Carolina's controversial "bathroom bill".

A new location is yet to be determined, but The Vertical reported New Orleans is the leading candidate to step in as the host, while other cities remain in the mix.

The NBA said it hopes to work with Charlotte to reschedule the All-Star Game as early as 2019.

"Our week-long schedule of All-Star events and activities is intended to be a global celebration of basketball, our league, and the values for which we stand, and to bring together all members of the NBA community - current and former players, league and team officials, business partners and fans," the NBA said in a statement.

"While we recognise that the NBA cannot choose the law in every city, state, and county in which we do business, we do not believe we can successfully host our All-Star festivities in Charlotte in the climate created by HB2 [House Bill 2]."

NBA commissioner Adam Silver has consistently stated his and the league's objection to House Bill 2, which nullifies local anti-discrimination ordinances and bars transgender people from using the bathroom that aligns with their gender identity.

The fact that the league's showcase weekend could end up in New Orleans, which lured the original Hornets away from Charlotte in 2002, only adds to the irony.

Michael Jordan, principle owner and chairman of the Hornets, said in a statement he "understood" the league's decision.

"There was an exhaustive effort from all parties to keep the event in Charlotte, and we are disappointed we were unable to do so," the statement read.