Wrexham are among four Premier League clubs set to enter a new domestic cup tournament that would allow them to reach European competition under the Welsh flag for the first time in three decades.
The proposal, subject to FA approval, would see Cardiff, Swansea, Newport and Vale Parkinson compete in a revamped 16-team Welsh League Cup alongside the 12 Cymru Premier clubs.
The Football Association of Wales says the winner of the competition will play in the qualifying rounds of the European club competition.
Wrexham were the last Welsh Premier League team to qualify for Europe through the domestic route – having played in the 1995–96 European Cup Winners' Cup – although Swansea have played in the Europa League under an English banner after winning the EFL Cup in 2013.
The FAW says Cardiff, Newport, Swansea and Wrexham have agreed to exclude any profits generated from representing Wales in Europe from the financial regulations of the Premier League or Premier League.
Noel Mooney, Chief Executive of the Welsh Football Association, said: “This will be a game-changer for the development of the game as we work to unleash the full potential of Welsh football.”
“It will unite Welsh football, improve the game at all levels and deliver meaningful community benefits across Wales making our clubs and communities more sustainable.
“It will generate significant additional revenue through a revamped Welsh League Cup competition with expanded participation for the four top-ranked Welsh clubs involved in the English football pyramid.
“This will be distributed across the JD Cymru Premier, the Genero Adran Premier (the Welsh Women’s top league) and grassroots facilities across the country.
“It also represents the spirit of co-operation between football associations across the UK ahead of the home nations’ joint hosting of Euro 2028,” he added.
The FAW feels the revamped Welsh League Cup, which will be played in the format of a four-round knockout competition, could generate an additional £3m per season.
A potential Premier League winner could boost Wales' UEFA club dealings, with the country currently ranked among the lowest in Europe.
The FAW says the plan has also been discussed with UEFA, the Secretary of State for Wales and the Welsh Government, and pending final approval, the competition will begin next season.