A Football Association commission set up to investigate ways of improving the England side wants to allow Premier League clubs to enter B teams in lower divisions from 2016-17.
It has also recommended in a report to reduce the number of non-home grown players allowed in a top-flight squad from 17 to 12 by 2020-21.
The commission was set up by FA chairman Greg Dyke and features figures from across the game including Manchester United defender Rio Ferdinand and England manager Roy Hodgson.
It has been tasked with investigating ways of increasing the number of England-qualified players in the top clubs.
The commission suggested the creation of a new 'League Three' which would be initially made up of 10 Premier League B teams and 10 teams from the cream of the minor leagues.
Clubs could be promoted and relegated between League One, Two and Three and the minor league but B teams could not play in the second-tier Championship and must always be at least one division below their A teams.
The FA commission's report says the next step in the process "should entail detailed consideration, consultation and debate between all interested parties in football".