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The Football League and the Premier League are to collaborate on a 12-month review to find a solution to the issue of compensating clubs when young players are transferred.

The Premier League had wanted to introduce a new system for compensating Football League clubs for young players who move before the age of 16 as part of the negotiations over a new deal on parachute and solidarity payments.

It had proposed a new system that would apply a sliding scale of compensation depending on how long the player had been with the club in question, plus add-ons based on first-team appearances and international caps.

But some Football League clubs fear that such a system, replacing the current ad-hoc deals that go to a tribunal if a fee cannot be agreed, could lead to their best players being picked off.

The Guardian reports that the Football League's new chairman, Greg Clarke, said the two leagues would consult with their clubs before attempting to draw up a compromise.

Clubs in the top flight need to have at least eight "homegrown" players in their 25-man squads from next season under new rules, meaning they must have been developed by a club in England for three years before their 21st birthday.

"Young players are a highly contentious issue that you have to be objective about," said Clarke. "For every player that has gone from the bottom of the Football League to the top of the Premier League and left the selling club saying they sold him for half a million but should have got five, they have sold someone for half a million who was never seen again.

"We have got a 12-month process where we've got to consult with our clubs, they've [the Premier League] got to consult with theirs. We have promised to try and reach agreement. The right deal is in both our interests. But you have to go the extra mile, because there is a lot of paranoia around in football."