Premiership clubs that go into administration will, from next season, have six points deducted. The proposal is expected to be approved at the league's summer meeting, which starts tomorrow and concludes on Friday.

A deduction of 12 points will be discussed but the likelihood is the clubs will settle on a less draconian six. That would act as a deterrent while not condemning offenders automatically to relegation.

The move to penalise financial mismanagement arises from a desire to protect the Premier League's image, enhance boardroom realism and ensure that sensible chairmen cannot be disadvantaged. Disquiet was expressed at how Leicester City apparently benefited from administration last season en route to promotion from the First Division.

Leicester resumed trading as a new company in February, having seen most of a '50m debt written off and having held on to key players. A significant body of Premier League opinion does not want overspending clubs to use administration to competitive advantage. One leading Premier League figure said: "People are uncomfortable with what happened at Leicester because it's almost like a constructive administration.

"You shouldn't be able to do what Leicester did and say: 'Well, it didn't work but we'll close down and set up tomorrow as a new company. We'll keep all our players; we can't pay them at the moment but we've promised we'll pay them at the end of the season if we go up.' You keep them all and everything's wonderful.

"Nottingham Forest decide to do the moral thing and pay off all their debts and not rest until they've done that, and they've narrowly lost out on promotion to Leicester. Who's done the right thing, the decent thing?"

No Premiership clubs have gone into administration but sensible accounting has become paramount given that less money can be expected from the next television deal. The proposal would need the approval of 14 of the 20 Premiership clubs.

"The principle of a points deduction for clubs which go into administration or receivership is probably agreed," said one representative. "It's more a case of how draconian the punishment should be."

The Football League also votes tomorrow at its annual meeting on whether to punish clubs who go into administration. Penalties being considered include points deductions or relegation and would come into force for 2004-05.