The Premier League in England will introduce a squad cap of 25 players and a quota on home-grown players from next season, chief executive Richard Scudamore has confirmed.

The 20 clubs met last Thursday to agree the introduction of a home-grown player rule, which will take effect at the start of next term, and 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 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 denies the move will encourage clubs to hoard young foreign players and claims the England team will ultimately reap the reward.

“It’s not in the club’s 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.”

All 20 Premier League members also agreed to adhere to a set of financial reporting rules designed to protect the viability and sustainability of the clubs.

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