Uefa has approved plans to force clubs in European competition to spend only what they earn. The financial fair play rules will require clubs to break even over a rolling three-year period if they want to play in the Champions League or Europa League.

"We have worked on the financial fair play concept hand-in-hand with the clubs, as our intention is not to punish them but to protect them," said Michel Platini, the president of Uefa, after its executive committee had approved the rules at a meeting in Nyon, Switzerland. "The philosophy is that you cannot spend more money than you generate.

"This approval is the start of an important journey for European football's club finances as we begin to put stability and economic common sense back into football. I thank all the stakeholders who have supported this along the way."

There will be some leeway granted for the six years after 2012 but some Premier League clubs, notably Manchester City, Chelsea and Aston Villa, could still fall foul of the rule unless they change their spending habits.

Manchester United have carried out a 'dummy test' and believe they would pass the rules despite the handicap of paying out £45m to service their debts every year. Arsenal and Tottenham would pass the test comfortably, while Liverpool, Celtic and Rangers would probably do so.

"We support the financial fair play measures. We are confident that we pass them and that we will continue to do so," said a United spokesman.

It is understood that clubs must not return losses of more then €45m (£38m) for the 2012-15 period. After 2015 clubs are given a leeway of €30m (£26m) for three-year losses after which the figure will be reduced still further.

Clubs that breach the rules will not be granted a Uefa club licence to take part in European competitions.