The Premier League is reportedly closer to agreeing a new financial system to support clubs in the lower leagues.

As reported by the Times , the 20 sides that make up the top flight discussed a plan titled 'A New Deal for Football' at a shareholders' meeting in London on Tuesday.

It would see a new system in how cash is distributed to those in the lower leagues, as well as reform of parachute payments.

Discussions are taking place following pressure laid on the sport by the Government and the independent review of football by MP Tracey Crouch.

The key point from the new system is that funding would be allocated to Championship clubs on a sliding scale of where they finished in the table - which is similarly used in the Premier League.

Cost control measures would be interested to prevent over-the-top spending, while parachute payments would still be in place - though at a far lower amount than the £44million which is currently given to clubs in the first season after they go down.

The Premier League are making progress in working towards a deal which will change the way in how cash is distributed among the lower leagues and affect parachute payments

It's believed that by lowering the amount offered to clubs in the form of parachute payments, would help reduce the 'cliff edge' between the Premier League and the Championship. 

Another idea under the deal would be for grants to be made available to EFL clubs where the Premier League would provide funding for capital projects  such as improvements to stadiums and training grounds. 

Details of the new deal are yet to be finalised, but the report by the Times state there was a 'general consensus on the principles', and that the proposals have been widely supported.

The Premier League has been under intense pressure to increase its contribution to the EFL and lower leagues by hundreds of millions of pounds per year - or face the prospect of being forced to by legislation.

Back in April, Sports Minister Nigel Huddleston said that he would give the independent regulator the power to impose a financial settlement if the Premier League doesn't come up with a 'satisfactory' deal with the EFL and other football authorities.

He said: 'There is an expectation that the Premier League understand there is a sense of urgency to deal with this issue. 

'The message to the Premier League is quite clear: they need to act sooner rather than later because, otherwise, it will be forced on them through the regulator.

'There's absolute recognition that the financial flows, the financial distribution at the moment is not satisfactory. We expect that it's going to be a football-led solution and if it isn't then it will fall to the regulator to get involved.'

EFL chairman Rick Parry said the league had been discussing the matter with the Premier for two years, 'calling for a 75/25 split of revenues with the Premier League, without achieving any tangible progress'.

The Times report states that certain Premier League sides want Championship teams to develop young English talent by agreeing to play a fixed number of under-23 players who could come on loan from top-flight clubs.