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The Football Association is set to block the EFL's Welsh clubs from taking part in a revamped Welsh League Cup.
This comes after the Welsh FA unveiled their plans for a new-look domestic cup competition, which would see Cardiff, Swansea, Newport and Wrexham all taking part.
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The four clubs would compete against 12 teams from the Cymru Premier in an expanded League Cup with the winner earning a spot in the Europa Conference League qualifying rounds under the Welsh coefficient.
With £3million in prize money and the lure of European competition up for grabs, the competition represents a particularly tempting prospect for Wrexham owners Ryan Reynolds and Rob McElhenney.
So far, the plans have received unanimous backing from Wales' top-flight clubs, as well as gaining approval from UEFA.
But the new format could still fall through, with the final decision resting with England's FA, which is consulting with both the EFL and Premier League over the matter.
Ahead of a meeting of the FA's Professional Game Board next week to discuss the issue, the Guardian reports that sources involved believe the governing body is likely to reject the proposal.
With representatives from the EFL and Premier League sitting on the PGB, the publication claims that both parties have serious reservations about the competition.
Among these are the potential knock-on effect for the integrity of EFL competitions, as well as increased fixture congestion.
After Swansea reached the Europa League in 2013 with victory in the League Cup, the EFL is said to be worried by the impact of Welsh sides opting out of this qualification route on their competitions' value.
There is also concern over the prospect of Welsh clubs, particularly Wrexham, gaining a significant commercial advantage from this.
The Red Dragons have gained worldwide acclaim as a result of their Hollywood ownership, which has allowed them to tap into the American market.
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This has been further boosted by the success of their award-winning Disney+ docuseries 'Welcome to Wrexham'.
Several clubs are said to be resentful of the way in which the League One side have gained such commercial acclaim, whose qualification for the Europa Conference League would benefit UEFA given their considerable US fanbase.
A source told the Guardian: “The Welsh clubs either play in English competitions or they don’t.
"The ‘Welcome to Wrexham’ effect has been great for the EFL of course, but the EFL has also been great for Wrexham.
“It seems fundamentally unfair for these clubs to get both the commercial advantages of playing in England, and then the further benefit of qualifying for Europe via a Welsh competition.
"This proposal looks like they want to have their cake and eat it.”
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And it isn't just those at the FA who are opposed to the potentially groundbreaking new path for Welsh football.
Earlier this week, talkSPORT's Darren Bent claimed that the EFL quartet should be expelled from the Football League should they take part in the proposed Welsh League Cup.
Speaking on talkSPORT Drive on Wednesday, the former Tottenham striker took aim at their plans to gain European qualification via the competiton.
Bent said: “I don’t think they should be able to back door it into Europe. You’ve made your decision now, you’re in the EFL.
“They should be kicked out of the EFL if they do enter into this cup.”
