London  - The Premier League revealed on Tuesday that it will introduce a maximum squad size and a quota for home-grown players from the start of next season.

The 20 clubs took the decision at a meeting last Thursday, and will also impose the immediate implementation of financial reporting rules.

"As of next season clubs will be required to have a squad named of up to 25 players, of which no more than 17 can be over the age of 21 and not home grown," said chief executive Richard Scudamore.

"The definition of home grown is trained for three years under the age of 21 by somebody in the English and Welsh professional system.

"Clubs will have to declare their 25 at the end of August when the window shuts and then again at the end of January."

Scudamore was quick to head off suggestions that the rules will encourage clubs to hoard young foreign players, and insisted that the ultimate beneficiaries will be the England national team.

"It's not in the clubs' interests to stockpile players. It will make buying home-grown talent more attractive," he said.

"We're not going down the route of a nationality test but what this will mean is that you just can't buy a team from abroad.

"We think it will give clubs an extra incentive to invest in youth. We think that one of the benefits will be that it will help the England team."

The 20 clubs also approved plans to adhere to a set of financial reporting guidelines.

"They will all have to annually submit accounts and future financial information," said Scudamore.

"At all times the board of the Premier League will be applying a test which basically says this: can the club fulfil its fixtures, pay off its creditors when they are due and also to meet obligations to the Premier League's contracts and partners?"

Scudamore said the board could step in and agree a budget for the running of a club if it believed the club was at risk of not meeting its obligations. Transfers could also be embargoed.

"It's absolutely crucial that these clubs are run as ongoing viable concerns. These financial rules apply immediately," he said.

"This is tied in, and we passed the rule during the summer, to a 'fit and proper person test'.

"At our club meeting last week, the clubs absolutely endorsed our position of not linking expenditure to income." (dpa)