Wales’ four English Football League clubs are set to enter a domestic cup tournament that would allow them access to European competition under the Welsh flag for the first time in three decades.

The proposal, subject to Football Association approval, would see Cardiff, Swansea, Wrexham and Newport compete in a revamped 16-team Welsh League Cup alongside the 12 JD Cymru Premier clubs. The Football Association of Wales (FAW) says the competition winner will go into the qualifying rounds of a Uefa club competition.

Wrexham were the last Welsh EFL club to qualify for Europe through a domestic pathway – playing in the 1995-96 Cup Winners’ Cup – although Swansea 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 profit derived from representing Wales in Europe from financial regulations in the EFL or English Premier League.

FAW chief executive Noel Mooney said: “This will be a gamechanger for the development of the game as we work to unlock the full potential of Welsh football.

“It will unite Welsh football, improve the game at all levels, and deliver meaningful societal 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 of the four highest-ranked Welsh clubs that participate in the English football pyramid.

“This will be distributed throughout the JD Cymru Premier, Genero Adran Premier [Wales’ top women’s league] and grassroots facilities across the country. It also represents the spirit of collaboration and cooperation among football associations across the United Kingdom ahead of the home nations’ joint co-hosting Euro 2028.”

The FAW feels the revamped competition, which will be played in a four-round knockout competition format, could generate an additional £3m a season. A potential winner from the EFL could boost Wales’ Uefa association club coefficients, 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 would start next season.