Sixteen European top clubs have been asked to sign a declaration of intent before the end of the month to join what would be a privately run Super League from 2021 onwards, German news magazine Der Spiegel reports.
Such a league would spell the end for the Champions League in its current form, Der Spiegel said in its report based on investigations by the Football Leaks platform and made available to the European Investigative Collaborations (EIC) reporting group.
The report said the plan was presented to Champions League holders Real Madrid last month by a consultancy firm.
According to the report the Super League would consist of 11 founding members who can not be relegated: Real Madrid, Barcelona, Manchester United, Chelsea, Arsenal, Manchester City, Liverpool, Paris Saint-Germain, Juventus, AC Milan and Bayern Munich.
Atletico Madrid, Borussia Dortmund, Olympique Marseille, Inter Milan and Roma would join as invited teams who could be relegated into a second tier which is also being discussed.
The proposal comes ahead of next year's talks over Champions League rights and the distribution of prize money in the new cycle from 2021.
Arsenal's director of football Raul Sanllehi has confirmed the club entered into talks over a potential European Super League.
Earlier this month, whistleblowers 'Football Leaks' claimed Arsenal were one of a number of clubs exploring the potential for a new competition of Europe's elite.
The Gunners are fifth in the Premier League and have been out of the Champions League for the past two seasons, and while they are desperate to return to the top tier of European competition, Sanllehi claimed any potential breakaway competition is not imminent. "We need to make sure Arsenal is always in the driving seat of anything that may happen in the future," he was widely quoted as saying by the British media.
"It won't happen in the short to medium term because we have an agreement with UEFA right now, but I don't know what the future will bring because the future writes itself.
"We need to be at least aware and decide in a responsible way whether that is the direction to take or not.
"The way it was explained (in Football Leaks) may seem like we are doing secret things but there is nothing secret.
"There is a document that has been presented in that article that has Arsenal's name, it also has Barcelona's name. But [there is] no signature and I can assure you [of that] because it's a draft."
European football's governing body, UEFA, and the European Club Association (ECA) will reportedly reject plans for a breakaway continental competition, as well as FIFA's plans for a new Club World Cup and Nations League.
Sky Sports News cited reports from Football Leaks (h/t Der Spiegel) regarding plans for a new European Super League, adding ECA head Andrea Agnelli and UEFA president Aleksander Cerefin will announce a "combined rejection" of those rumours.
The ECA previously denied any knowledge of the plans for a newly formed tournament outside UEFA regulations that would feature 16 European teams and would begin in 2021.
It's understood the ECA and UEFA will hold a joint-press conference in Brussels on Tuesday to make the announcement.