A breakaway European Super League is set to be announced on Sunday night, with six clubs already expected in the league.
According to Sky News, among the English clubs involved are Liverpool, Manchester United, Arsenal and Chelsea.
The project has been launched to rival UEFA’s Champions League format which currently dominates European football.
Sky News’ City editor Mark Kleinman said: “My understanding is that 12 clubs from across Europe including the six biggest English clubs have now signed up to this new format.
“The others include Barcelona, Juventus and Real Madrid.”
Kleinman added: “The new league includes staggering sums of money that will be handed to the participating clubs. About $6billion has been committed to this new project by the American bank JP Morgan.
“And this will come after European clubs’ finances have been hard-hit by the coronavirus pandemic which is one of the reasons why so many of Europe’s biggest clubs have decided that now is the right time to form a European Super League after years of on/off discussions about such a project.”
The Premier League’s chief executive Richard Masters has written to all 20 of the league’s clubs in England to state its opposition to the new project.
Mr Masters told the 20 that “this venture cannot be launched without English clubs and we call upon any club contemplating associating themselves or joining this venture to walk away immediately before irreparable damage is done”.
Mr Masters goes on to say in the memo: “We do not and cannot support such a concept.
“Premier League rules contain a commitment amongst clubs to remain within the football pyramid and forbid any clubs from entering competitions beyond those listed in Rule L9, without Premier League board permission.
“I cannot envisage any scenario where such permission would be granted.”
The move to create a rival league is being seen by some in football as a surprise after the European Club Association (ECA), which represents 246 of the continent’s leading clubs, gave their backing to UEFA’s reforms.
UEFA has proposed an increase to 36 from 32 teams in the Champions League, and an overhaul of the group stage into a single table rather than the current groups of four clubs.
Teams would play 10 matches each in the group stage rather than the six they currently play and a playoff round would also be introduced before the last 16.
There have been reports of a plan for a breakaway league for a number of years and the speculation returned in January with several media reports that a document had been produced outlining the plans for a 20-team league.
Those reports led FIFA and UEFA to warn they would ban any players involved in a breakaway from playing in the World Cup or European Championship.