The All India Football Federation is considering to turn the annual National Football League into a three-tier affair by starting a third division for lower-ranked clubs.
"It will ensure wider participation from more areas in the country. This will augur well for Indian football," a top AIFF official said.
The official said the NFL was being expanded to include more clubs as part of a long term plan, which envisages India playing in the main draw of the World Cup.
AIFF president Priya Ranjan Dasmunshi is believed to have agreed in principle to the idea of a third division, which could begin as early as next year.
"Some improvements to the existing infrastructure would suffice to run a third division contest. The second division championship is a success and is attracting smaller clubs," the official said.
The NFL began in 1996-97, while the second division contest is only two seasons old.
The Asian Football Confederation is laying emphasis on development of Indian football and is sending a delegation in February to study the game's condition and suggest improvements.
The AIFF is also trying to provide more facilities to those connected with the sport. It has announced that players, coaches and referees participating in NFL matches would be covered under a novel insurance scheme.
Introduced in association with the United India Assurance company, the scheme offers to reimburse up to Rs 50,000 of the costs of hospitalisation in case of injury.
The amount would be higher if the injury incapacitates the person.