Yes - he can apply for PR through sponsorship with his Canadian spouse. I would recommend he submit an outland application as soon as he's ready along with the ARC application. Depending on whether he was convicted of the criminal charges, what the penalty was, and how CIC assesses his crime - he may also have to go through the rehabilitation process to be allowed to return to Canada. He needs to make sure he is 100% honest in the PR application about his full immigration history (i.e. deportation) as well as the crimes.
He should be prepared for longer than normal processing times for the spousal sponsorship application given the deportation, requirement for an ARC and possible requirement for a rehab application.
I don't think I would bother with the TRV. Given his history - it will likely be quite challenging to be approved. I would focus on the PR sponsorship application.