EFL chairman Rick Parry has welcomed an “important milestone to help us secure the long-term financial sustainability of England’s football pyramid”.

Legislation to establish an independent regulator will be introduced to Parliament today (Tuesday).

A key point is the regulator being given “backstop powers” to impose a financial settlement on the Premier League and EFL.

Top flight clubs met last week but were unable to agree on a proposed settlement, which would have injected £925million into the EFL over six years.

Other eye-catching aspects include the regulator being given the power to fine clubs up to 10 per cent of turnover for serious breaches and introducing stronger tests for owners and directors of clubs.

In an official statement, Parry said: “If delivered on the right terms, this landmark legislation can help fix the game’s broken financial model by offering the independent input ultimately needed to help ensure that all clubs can survive and thrive in a fair and competitive environment.

“The establishment of the independent football regulator will be at the heart of this reform, and we are encouraged that the regulator will be given backstop powers to deliver financial redistributions should the game be unable to agree a deal itself.

“In recent years, we have been working with Government and across Parliament on a cross-party basis. It is clear there is an appreciation of just how important professional clubs are to their communities and why they must be protected.

"We are pleased that the Government has stated its commitment to the State of the Game Review which will provide the basis for the independent regulator’s work in making the game financially sustainable.

“The league looks forward to contributing to that review while simultaneously working with EFL clubs, Parliamentarians and officials to ensure that the football governance bill is fit for purpose and can deliver the best regulatory regime to safeguard our game for generations.”