Premier League academy teams will play in the revamped EFL Trophy next season after the decision was approved at the annual general meeting.
16 of the 21 existing category one academies – most of them belonging to top-flight teams – will be invited to join a 64-team competition which will start with 16 groups of four before becoming a straight knock-out with a final at Wembley.
The Premier League is also understood to have provided £1million to create a total prize fund of £1.95m, with bonuses awarded for each win.
The 16 elite academy sides will be evenly distributed throughout the groups with the 48 clubs from Leagues One and Two, with the whole competition running on a north/south basis until the final.
Each team will play each other once in the group stage, with the academy team getting just one home game. The knock-out stages will be single ties apart from the semi-finals, where there will be two legs.
The competition is currently without a title sponsor as Johnstone’s Paints’ contract expired last season, with Barnsley beating Oxford in the last JPT final.
The EFL announced that Ian Lenagan, the owner of Super League rugby league team Wigan Warriors and former director of Oxford, had been voted in as its new chairman, replacing Greg Clarke.
But as with the vote on the EFL Trophy proposal, it is thought that the vote was far from unanimous with several clubs voicing their displeasure at the process.
There was also understood to have been some criticism of Lenagan’s record as an ambassador for League Two clubs whilst at Oxford.