The Premier League is confident of finally agreeing a deal to increase financial redistribution to the English Football League after a meeting between executives of the leagues and club officials this week. Three clubs from the Premier League and three from the EFL joined leadership teams from the leagues to discuss a way of overcoming challenges that have held up progress on a settlement for two years. Bad blood over discussions and vastly differing perspectives on the needs of the English game have previously caused the government to threaten intervention from a new independent football regulator should a deal not be agreed. But both parties are understood to have found common ground over a financial settlement, believed to be about £130m a year, that would go from the top flight to the 72 EFL clubs and be shared on a performance-related basis. Premier League clubs met in central London on Thursday to discuss the matter as well as renegotiations of domestic TV rights deals. The Premier League has a mandate from its clubs to act on a deal. The EFL is to apprise its clubs of the situation in a general meeting next week. No formal offer has yet been received by the EFL and although an agreement has been found on redistribution there are still sticking points, especially over an attendant agreement that seeks to impose cost controls on English clubs. Teams across the pyramid would be expected to limit spending to a proportion of revenue as a condition of the new financial settlement. But there is a disagreement over the proportion, with the Premier League asking that clubs relegated to the Championship be allowed to spend 85% of revenue – more than the 70% limit expected to be applied to other clubs in the division. The Premier League also remains committed to parachute payments, something the EFL chair, Rick Parry, has described as “an evil that must be eradicated”. The Premier League believes this week’s meeting, which brought club officials into discussions previously taking place between league executives, has helped to clarify differing perspectives. Ultimately it will be down to clubs to vote to agree on changes which would herald widespread and permanent alterations to the English game.