
Wrexham are one of four EFL clubs scheduled to take part in the new domestic cup tournament, which will see them qualify for European competition under the Welsh flag for the first time in 30 years.
The proposal, subject to FA approval, would see Cardiff, Swansea, Newport and Phil Parkinson’s League One sides compete in a revamped 16-team Welsh League Cup alongside 12 JD Cymru Premier clubs.
The Football Association of Wales said the winner of the competition would advance to the UEFA club competition qualifiers.
Wrexham were the last Welsh EFL club to qualify for Europe via the domestic route. Swansea played in the Europa League under the English banner after winning the EFL Cup in 2013, but also played in the 1995–96 Cup Winners’ Cup.
The FAW said Cardiff, Newport, Swansea and Wrexham had agreed to exempt profits from representing Wales in Europe from the financial regulations of the EFL or English Premier League.
FAW chief executive Noel Mooney said: “This will be a game-changer for the development of the game as we work to unlock the full potential of Welsh football.”
“This will unify Welsh football, improve the game at all levels and deliver meaningful social benefits across Wales, making our clubs and communities more sustainable.
“The revamped Welsh League Cup competition, along with increased participation from the top four Welsh clubs in the English football pyramid, will generate significant additional revenue.
“This will be rolled out across the JD Cymru Premier, Genero Adran Premier (Wales’ top women’s league) and grassroots establishments across the country.
“This also represents the spirit of cooperation and collaboration between football associations across England as we look ahead to jointly hosting Euro 2028.”
The FAW believes a revamped Welsh League Cup, played in a four-round knockout competition format, could generate an additional £3m per season.
A potential EFL winner could boost Wales’ UEFA association club coefficient, which currently ranks among the lowest in Europe.
The FAW said the plan had also been discussed with UEFA, the Secretary of State for Wales and the Welsh Government and that the competition would begin next season, pending final approval.