The English giants are locked in talks with the likes of Real Madrid, Barcelona, Juventus, PSG and Bayern Munich about forming a FIFA-backed tournament that would change football's landscape forever.
More than a dozen clubs from England, France, Germany, Italy and Spain are in negotiations about becoming founder members of the 'European Super League'.
It is understood the plans have financial backing to the tune of £5billion from leading bank JP Morgan to fund the proposal, which could also involve Manchester City, Chelsea, Arsenal and Tottenham and generate broadcasting revenues running into billions.
The news comes less than two weeks after it emerged Liverpool and United were behind the failed "Project Big Picture" aimed at revamping the English game.
The European Super League could come into force in 2024 and replace the Champions League, but would face severe opposition from the likes of the Premier League and FA.
Football's world governing body FIFA are keen to develop a new format involving 18 teams, with games being played during the regular European season.
The top eight teams would then be involved in a knockout competition, with the eventual winners pocketing more than £100m in prize money.
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But the new league would usurp both the Champions League and Europa League and has left FIFA on a fresh collision course with their UEFA rivals.
The stunning proposal would need the backing of UEFA, who are due to revamp the structure of the Champions League in 2024.
The news has sent fresh shockwaves through the national sport, which is already at loggerheads and facing a civil war because of "Project Big Picture".
The proposals would have seen the Premier League reduced from 20 to 18 clubs and handed the voting power to the big six' - but a 'European Super League' would take the structure of the sport onto a whole new level.
Talks between leading clubs, FIFA and former Real president Ramon Calderon have been ongoing for more than 12 months.
A Europe Super League would have huge implications for the value of domestic broadcasting and sponsorship rights - at a time when the game is suffering severe financial problems due to Covid-19.
Top flight clubs have complained they are losing £100m a month, while EFL clubs have rejected a £50m bailout package from the Premier League despite dozens of clubs facing bankruptcy.