Sportinglife.com reports that Sport England announced 'future funding will need to be considered if the governance of English cricket does not embrace reform'.
The England and Wales Cricket Board (ECB) has come under fire from Sport England following the publication of The Sports Nexus Report on English Cricket.
Roger Draper, chief executive of Sport England, said: "We are concerned that the governance of the ECB may threaten the future growth and success of this sport.
"We may have to consider future funding if significant changes are not made before cricket's four-year business plan is submitted in November."
In the meantime, Sport England will continue to fund Team England and the National Cricket Academy and were keen to praise the rise of Michael Vaughan's team to number two in the world rankings.
A statement from the organisation said: "Sport England have become increasingly concerned by the governance of English Cricket and have endeavoured to work with all parties to modernise this sport.
"The approach to the ECB has been inclusive, charting a course of reform from within. Sport England has worked with all key partners including the ECB, the MCC, cricket sponsors and broadcast partners."
Sport England also warned it is 'undertaking reform' with regards to a number of other sports including golf, boxing, bowls, karate, hockey and athletics.
