The licences will be issued only if a club satisfies four criteria regarding infrastructure and administration, and financial, legal and sporting matters.
"Clubs will not be refused a licence if they are in debt because many clubs are in debt but have guarantees from their banks," said Markus Studer, UEFA's deputy chief executive.
"A club would be refused a licence though if UEFA felt it was in debt and was likely to fold during the season."
A working party chaired by UEFA vice president Senes Erzik of Turkey has been looking into licensing clubs, and the new system could start in 2002.
One of the innovations is that a club will not gain a licence unless it operates a youth development system which UEFA hopes in time to see encompass youngsters from the age of 12.
Studer said: "The idea must be ratified at the executive committee at the end of June after some final detailed reports, but everything is in place for the system to start at the beginning of the 2002/03 season.
"What we want is to make sure that all clubs compete on roughly the same kind of playing field.
"So that if Manchester United host a match at Old Trafford, they know they will get at least the guaranteed levels of reciprocation back from the visiting club.
"Their stadium might not be as grand, but at least they know the club has met UEFA's criteria."
A number of countries like Spain and Germany already operate a licensing system for their senior clubs.
Studer said it would be up to UEFA's 51 national associations to monitor the system on behalf of the ruling body.
Reuters
