FIFA is planning a 24-team summer Club World Cup which would take place every four years.
The Times is reporting that the first tournament could take place in 2021 with China said to be keen to host the competition.
It would feature 12 European teams with Liverpool, Manchester United, Real Madrid, Barcelona, AC Milan, Bayern Munich, Ajax, Inter Milan and Juventus said to be near certainties.
The three other European clubs would be selected from a group including Chelsea, Manchester City, Arsenal, Atletico Madrid, Paris Saint-Germain, Porto, Benfica, and Borussia Dortmund.
The new competition would see the scrapping of the current Club World Cup, held annually in December, along with the Confederations Cup which is held in the summer prior to a World Cup.
Clubs could earn up to £100 million from participating in the tournament which is backed by a consortium led by Japanese company SoftBank. Backers from Saudi Arabia and the United Arab Emirates are also reported to be involved.
An emergency FIFA meeting is expected to be held early next month to rubber stamp the tournament. Both UEFA and the Premier League are said to have concerns regarding the new competition.
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