The competition is heading to China starting in 2021 and will take the place of the Confederations Cup, per the New York Times.
It also means the previous Club World Cup will not take place after the 2020 edition.
There will be 24 teams participating in the tournament, with eight of them coming from Europe.
Those places go to the teams that win the Champions League and Europa League over a four year period.
It means that Liverpool and City would be among the competitors in the 2021 edition of the FIFA Club World Cup.