Manchester United and Liverpool have been forced to abandon Project Big Picture after other Premier League clubs emphatically rejected the plans at an emergency meeting on Wednesday.
The north-west giants were told in no uncertain terms that the proposals were a non-starter and clubs have now instead agreed to to hold an urgent strategy review, including a fresh bail-out offer to the EFL.
A Premier League statement said: "Premier League Shareholders today unanimously agreed to work together as a 20-club collective on a strategic plan for the future structures and financing of English football.
"Premier League clubs also agreed that Project Big Picture will not be endorsed by the Premier League, any of its clubs or The FA.”
The plans drawn up by United and Liverpool, and backed by EFL chief Rick Parry, included an immediate £250million bail-out to EFL clubs struggling financially amid the coronavirus pandemic.
They would have seen the Premier League reduced to 18 teams and the League Cup and Community Shield scrapped.
It was claimed the proposals would have seen the financial gap between the top-flight and the EFL narrowed, but complete power of English football would have essentially gone into the hands of its biggest clubs.
The rejection by the other Premier League clubs comes after fans groups of the so-called Big Six - Manchester United, Manchester City, Liverpool, Arsenal, Chelsea and Tottenham - joined forces to condemn the plans.
In a statement, they said: “By floating this latest plan, those behind it are acknowledging football needs to be reformed.
"It’s something we have been saying for many years. There are some suggestions in this plan that have merit.
“But we are totally opposed to concentrating power in the hands of six billionaire owners and departing from the one club, one vote and collective ethos of the Premier League.
"This part of the proposal must be dropped immediately if other elements are to be given serious consideration.”
