SMALL football clubs have been offered the hope that they will not lose vital income from selling rising talent.

The European Commission wants the transfer fee system scrapped because it breaks EU rules on fair competition and free movement of workers.

But there is concern that lower league clubs, such as Hartlepool, Darlington and York, will lose the money they get from selling players they have developed to bigger, more wealthy clubs.

The commission now says it will look at a new transfer system rather than scrapping it altogether so that the financial lifeline can be maintained.

North-East MEP Mo O'Toole, Labour's sports spokeswoman, said: "The current transfer system tends to benefit the big clubs over the smaller ones, lacks transparency and breaks EU law.

"But I am concerned that smaller clubs which rely on selling young stars for financial survival might lose out. They need to be compensated for developing new talent."

Labour MEPS voiced their concerns to Sports Commissioner Viviane Reding, who told the European Parliament that financial assistance to smaller clubs, who train players who then leave, would be guaranteed.

Ms O'Toole said: "She said that players would not be able to leave whenever they wanted. I am very pleased at this result. It shows that the Commission has been listening to us.

"Having cried foul and blown the whistle, the EU must find a system that works for both players and protects the smaller clubs.

"After hearing the commissioner's statement today I am sure they will find a good substitute."

The game's international governing body FIFA accepts change is needed but it is unclear whether it will support a compromise to keep transfer fees for players aged 18 to 24.