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The biggest shake-up of English football in a generation is being proposed by Manchester United and Liverpool - which would see the number of teams in the top flight reduced from 20 to 18.

Sky News' sports correspondent Martha Kelner said the changes would be "seismic" - putting the majority of power into the hands of the biggest clubs.

The plan - called Project Big Picture - has been confirmed to Sky News and was first reported in the Sunday Telegraph.

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As well as a change in size, the new proposals would alter the league's finances and power system.

A quarter of the league's revenue would go to the English Football League (EFL), with £250m paid up front to help them through the coronavirus crisis.

The FA would also receive £100m as a gift.

A change in the power structure would mean an end to the one-club, one-vote system.

Instead, the nine clubs that have been in the league for the longest amount of time will have full control of the running of the league.

Those teams would also be able to play more games in the Champions League, which is set to be expanded in 2024.

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Across the Premier League, Championship, League One and League Two, there would be 90 clubs in total, and the League Cup and Community Shield competitions would also be abolished.

For Championship clubs, there would be two automatic promotion places, while the third, fourth and fifth placed clubs would enter into play-offs with the 16th placed Premier League club.

The move has the support of EFL chairman Rick Parry, who held talks with both Liverpool and Manchester United.

In response to the new proposals, the Premier League says that it wants a wide-ranging discussion on the future of the game, adding: "This work should be carried out through the proper channels enabling all clubs and stakeholders the opportunity to contribute."

"In the Premier League's view, a number of the individual proposals in the plan published today could have a damaging impact on the whole game and we are disappointed to see that Rick Parry, chair of the EFL, has given his on-the-record support.

"The Premier League has been working in good faith with its clubs and the EFL to seek a resolution to the requirement for COVID-19 rescue funding. This work will continue."

Lower league clubs have been calling for more support, after the coronavirus crisis left them unable to open their grounds.

Speaking to Sophy Ridge on Sunday, the chairman of Colchester United, a League Two club, said the Premier League "really should step in and do something" because they are "in danger from the building that's crumbling below them".

Losing football clubs to COVID-19 would be a 'national outcry'

"The Premier League sits on top of a pyramid, and it's a really proud thing we have in our game, this system that goes all the way down into non-league as well," Robbie Cowling told Sky News.

"Most of the England team, most of the Premiership teams, their players have come from grassroots, they've all played under-9s football somewhere.

"The Premier League seems to think that we suck from it, but that's not the case. It sucks from the rest of the pyramid system. It really should step in and do something. They have to.

"If they think they're enjoying this penthouse view and they're not in danger from the building that's crumbling below them, they're absolutely mad."

A government spokesperson told Sky News: "We are surprised and disappointed that at a time of crisis when we have urged the top tiers of professional football to come together and finalise a deal to help lower league clubs there appear to be backroom deals being cooked up that would create a closed shop at the very top of the game.

"Sustainability, integrity and fair competition are absolutely paramount and anything that may undermine them is deeply troubling. Fans must be front of all our minds, and this shows why our fan led review of football governance will be so critical."