The Premier League is considering a formal ban on debt-fuelled club takeovers as part of a far-reaching  overhaul of its ownership rules.

Sky News has learnt that the 20 top-flight clubs are being canvassed by Premier League executives for their views on the merits of a block on so-called leveraged buyouts.

The consultation process, which has been signalled publicly by the league's chief executive, Richard Masters, is expected to conclude shortly.

Any proposed rule changes relating to the Owners and Directors Test (OADT) would be discussed at a meeting next month and voted on in September.

A ban on leveraged buyouts is not certain to move forward – and would not be applied retrospectively – but would, if implemented, bar the type of deal that saw Manchester United acquired by the Glazer family in 2005.

Concerns have been raised about the financial health of Burnley, the Lancashire side currently battling against relegation to the Championship.

Burnley is owned by ALK Capital, a US-based consortium which is reported to have used the club's money to help finance a £170m takeover.