Premier League clubs have agreed new financial fair play laws.

The clubs have agreed in principle to radical new rules which could tilt the balance of power away from the big spenders.

The main proposals are a break-even rule and a cap on the extent to which clubs can increase their wage bills each year.

This would mark a major change for the clubs, who made cumulative losses of £361million in 2010-11.

New measures were opposed by Aston Villa, Fulham and Manchester City, who last week became the first club to reveal an annual wage bill topping £200million, says The Sun.