Football authorities have until March 2012 to implement sweeping changes to the way the sport is run or face the threat of government intervention.
A deadline of 29 February has been set for the Football Association to overhaul its board and bring in a new licensing system for clubs.
Failure to do so will result in government legislation.
"[Football's] governance has failed to keep up with the modern game," said Sports Minister Hugh Robertson.
"I believe there are improvements that can be made. [But] I do not want government to run football, so this is an opportunity for the football family to work together to benefit the game in the long term."
The Government's stance comes after a report from MPs in July demanded the level of debt be addressed in the English game, John Whittingdale MP saying "significant changes need to be made to the way the game is run to secure the future of England's football heritage."
The Government has identified three "immediate priorities" for action: a complete restructuring of the FA Board; the implementation of an FA-administered licensing system for the professional game; and significant changes to the make-up and processes of the "football's parliament", the FA Council.
The FA Board is currently made up of FA chairman David Bernstein, general secretary Alex Horne and five representatives from the professional game (the Premier League and Football League) and five from the national game (the county FAs).
With conflicts of interest and historic feuds usually making this structure unworkable, the Government wants the board to be comprised of Bernstein, Horne, two more FA executives, two independent directors, two from the leagues and two from the counties.
The reforms demanded of the council are a reduction in length of tenure and the introduction of more women, more councillors from ethnic minorities, more ex-footballers and more representatives of supporter groups.
The proposed licensing system is intended to build on the two leagues' recent efforts to put in more safeguards against financial mismanagement, asset-stripping owners, tax avoidance and other related sins.
This idea will be greeted by many in the game but the leagues are unlikely to welcome any interference in their affairs from the FA.
BBC Sport contacted the FA and the Premier League for a response to today's announcement but both organisations refused to comment.
BBC Sport - Government tells English football: change or be changed
A deadline of 29 February has been set for the Football Association to overhaul its board and bring in a new licensing system for clubs.
Failure to do so will result in government legislation.
"[Football's] governance has failed to keep up with the modern game," said Sports Minister Hugh Robertson.
"I believe there are improvements that can be made. [But] I do not want government to run football, so this is an opportunity for the football family to work together to benefit the game in the long term."
The Government's stance comes after a report from MPs in July demanded the level of debt be addressed in the English game, John Whittingdale MP saying "significant changes need to be made to the way the game is run to secure the future of England's football heritage."
The Government has identified three "immediate priorities" for action: a complete restructuring of the FA Board; the implementation of an FA-administered licensing system for the professional game; and significant changes to the make-up and processes of the "football's parliament", the FA Council.
The FA Board is currently made up of FA chairman David Bernstein, general secretary Alex Horne and five representatives from the professional game (the Premier League and Football League) and five from the national game (the county FAs).
With conflicts of interest and historic feuds usually making this structure unworkable, the Government wants the board to be comprised of Bernstein, Horne, two more FA executives, two independent directors, two from the leagues and two from the counties.
The reforms demanded of the council are a reduction in length of tenure and the introduction of more women, more councillors from ethnic minorities, more ex-footballers and more representatives of supporter groups.
The proposed licensing system is intended to build on the two leagues' recent efforts to put in more safeguards against financial mismanagement, asset-stripping owners, tax avoidance and other related sins.
This idea will be greeted by many in the game but the leagues are unlikely to welcome any interference in their affairs from the FA.
BBC Sport contacted the FA and the Premier League for a response to today's announcement but both organisations refused to comment.
BBC Sport - Government tells English football: change or be changed
