In its bid to rival the lucrative Indian Premier League, the England and Wales Cricket Board (ECB) on Thursday announced a Twenty20 tournament from June next year.
The tournament, to be known P20, will have two divisions and is an attempt to emulate the successful IPL.
Despite fears of overload and a surfeit of Twenty20 cricket, the ECB voted for the extended format following research conducted by a committee headed by the Essex chairman Nigel Hilliard.
The format will include two divisions of nine teams each with three teams promoted and relegated.
"I wish to thank Nigel Hilliard and his working party for all the hard work they have put into the framework of this competition," ECB Chairman Giles Clarke was quoted as saying by the Guardian.
"I'm sure it will be another exciting development in the domestic cricket season."
The ECB is yet to decide on the number of overseas players and other playing conditions for the tournament.
While going for the two-tier format, the ECB ruled out a city-based franchise tournament based on the IPL which had the backing of all-rounder Andrew Flintoff.
"There is a good argument for that. You could base them in Manchester, Leeds, Birmingham and London and get many of the world's best players involved."