Under the new proposals, to be debated by the 20 top flight clubs this week, the current limit of 17 players who are not “home grown” will be cut to 12.
The FA believe the new rules will provide a Brexit compromise to benefit the English game.
In exchange for the limits on the number of overseas players, clubs will be given the freedom to sign players from all over the world, with work permits granted automatically by the government.
That will avoid the looming post-Brexit situation where European players would have to qualify for work permits by playing in a high percentage of full international games for their countries.
Forcing clubs to have more home grown players will be a huge step towards expanding the number of options available to Gareth Southgate and his successors as England boss.
Number of foreign players per squad
Manchester City 17
Tottenham 17
Brighton 17
Huddersfield 17
Watford 17
Chelsea 16
Liverpool 16
Fulham 16
West Ham 16
Arsenal 16
Manchester United 14
Newcastle 14
Leicester 13
Crystal Palace 12
Wolves 12
Southampton 11
Everton 10
Cardiff 7
Burnley 6
Bournemouth 5
The emerging crop of English talent would also be likely to get more game-time in the top flight, lessening the need for loan moves either to other leagues or down the football pyramid.
But the moves are likely to be opposed by the Big Six clubs, who are dead set against any more restrictions on foreign players.
Manchester City and Spurs currently have the full 17-strong overseas allocations in their first team squads, while Chelsea and Liverpool have 16.
Yet with Southgate only the latest Three Lions boss to be frustrated by the low number of English players in regular top flight action, the FA believes the proposed measures would be widely supported across the country.
It is not envisaged that any changes – likely to begin being implemented for the 2019-20 season – would have a dramatic instant impact.
Existing contracts for foreign players would be honoured with the foreign quota likely to be reduced over a three-season period, giving clubs time to adapt.
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