London: English Football League clubs have agreed to adopt UEFA's financial fair play system amid mounting concerns over spiralling wage costs, it was confirmed on Friday.
The Football League said all 72 clubs outside the Premier League had agreed "in principle" to adopt regulations which will prevent clubs from spending more than they earn.
Clubs who transgress are likely to be banned from entering the transfer market for a first offence, with serial offenders facing the possibility of points deductions.
Football League chairman Greg Clarke said welcomed the move, describing it as a "a very important step forward for professional football."
"Much more work needs to be done, but I am hugely encouraged and impressed by the energy and focus of our clubs on this issue."
"They have been the catalyst for change and have shown a real desire to self-regulate in this area. I congratulate them on taking this bold step."
Clubs in the Championship, the division below the Premier League, will seek to have the system in place in time for the 2012/13 season.
Clubs in League One meanwhile have agreed to introduce a "salary cap" which will ensure teams are only allowed to spend a certain proportion of their turnover on player wages from next season.
League Two already operates a salary cap set at 60 percent of turnover, although this is to be reduced to 55 percent.
FA chairman David Bernstein described the the Football League's decision as "encouraging".
"I welcome the Football League's new cost control measures. The FA supports these regulations and they are a welcome step in the right direction," he said.