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A key decision on the potential removal of the Premier League's debated PSR regulations and introduce a new framework is said to be approaching, according to the league's top executive Richard Masters.

The current regulations, introduced in 2015-16 to prevent clubs from overspending, allow losses of £105m over a three-year reporting cycle.

Yet, they have faced criticism by several top-flight teams for limiting their ability to invest.

Reports indicate that a ruling regarding modifications is expected to occur at a November gathering.

In February clubs opted to retain PSR for the ongoing campaign.

However a squad cost ratio (SCR) system of fiscal regulation was implemented by the league on a trial, non-mandatory footing.

The squad cost ratio mirrors Uefa's current financial regulations and enables teams to expend up to a percentage of their total revenues on squad-related costs.

Nine of the league's 20 clubs already have to comply with Uefa's SCR as a result of qualifying for Europe.

Both Chelsea and Aston Villa were penalized by European authorities recently for breaching the rules.

Asked about SCR at the Leaders sports conference in London, Masters stated: "We are consulting with our teams about an different approach.

That's not to say we don't think the PSR system works."

He added: "It's about closer alignment with continental rules, which is squad cost ratio, which is a income assessment.

In Uefa, it's now set at 70%. Our framework will allow 85% because we always want our clubs to have the capacity to spend.

"English football's top division was established on the foundation of financial backing in which global financial resources enter the league. We don't want that to be restricted."

Previous Rule Breaches

Top flight teams two historic clubs were docked points in the previous campaign for breaching PSR.

Last year, a Villa executive Nassef Sawiris claimed the rules "lack logical foundation" and protected the biggest clubs, while he was considering legal action against the rules.

After being compelled to sell squad members to comply with the regulations, Newcastle manager Eddie Howe has also been critical of PSR, saying it incentivises clubs to sell academy products.

"Financial sustainability rules represent retrospective profit assessment and has its own advantages and drawbacks. No system will be perfect," Masters commented.

"We have to keep these things balanced and continue the conversation with our clubs, and that's an important decision, so we need to allocate sufficient time to get it right. However, the verdict is imminent."

Additional Financial Models

The league is additionally testing an alternative framework called 'revenue-based capping' (TBA) which effectively caps the amount any club can spend as a proportion of the revenue earned by the league's bottom side.

Reports suggest the new rules - if adopted could incorporate revenue anchoring, and would come into force at the start of next season.

Historic expenditure during the recent player acquisition period amplified certain Premier League teams' worries about PSR, and whether changes are needed to protect competitive balance given the additional revenues being generated for those involved in the enlarged European competition and global club tournament.