Pathankot city has defence establishments, including the frontier Indian Air Force (IAF) base that was attacked by terrorists, suspected to be from Pakistan, in January 2016, leaving seven people dead.
Deputy Commissioner Gurpreet Khaira told the media the state Home Secretary has asked the district administration to identify a piece of land for the NSG centre.
"We are looking for the land in the vicinity of the air force station," he added.
Prior to the terrorist attack on the IAF base, three suspected Pakistani terrorists had carried out an attack in Dinanagar town in neighbouring Gurdaspur district on July 27, 2015.
Gurdaspur MP Sunny Deol had taken up the matter with Union Home Minister Amit Shah to set up the NSG centre in Pathankot keeping in view its proximity to Pakistan and strategically significant defence installations.
Even Deol's predecessor Sunil Jakhar had taken up the issue many a time.
It is learnt that the central government has asked the state government to provide land free of cost for the counter-terrorism unit.
Pathankot lies in the north of Punjab, close to international border with Pakistan and the troubled state of Jammu and Kashmir. The area is not as developed as other areas in Punjab.
( With inputs from IANS )