The EFL said a fund of Stg 50 million ($A90 million) in the form of a grant and monitored grant payments has been agreed for League One and Two clubs.

The Premier League will also provide a further financial commitment to assist the EFL in securing a Stg 200 million ($A361 m) loan facility that clubs in the second tier will be able to utilise interest-free.

The news follows months of negotiations between the two governing bodies.

EFL chairman Rick Parry said: "Our over-arching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic.

"I am pleased that we have now reached a resolution on behalf of our clubs and as we have maintained throughout this will provide much-needed support and clarity following months of uncertainty.

"I would like to thank (chief executive) Richard Masters and (chairman) Gary Hoffman for their efforts on behalf of the Premier League, and of course their shareholders, for making this welcome, tangible commitment to the professional game at a time when it has needed it most."

Masters said: "The Premier League is a huge supporter of the football pyramid and is well aware of the important role clubs play in their communities.

"Our commitment is that no EFL club need go out of business due to Covid-19.

The two organisations had been criticised for their failure - until now - to reach an agreement.

The Government has consistently said that the Premier League, rather than the taxpayer, must provide assistance to the EFL, and Culture Secretary Oliver Dowden said: "I warmly welcome this deal."

Australian Associated Press