The England and Wales Cricket Board have held "very positive and constructive'' talks with Sir Allen Stanford over a lucrative new Twenty20 competition.

The ECB are exploring different options as they look to limit the threat of the new Indian Premier League.

Texan billionaire Stanford already bankrolls a thriving Twenty20 competition in the Caribbean.

It is thought the ECB are looking into the possibility of setting up an 'English Premier League', which could be held in mid-summer.

The ECB are concerned about the impact of the IPL, which this year clashes with the start of the English domestic season and offers huge money to players.

A statement tonight read: "The meetings, which were held in London, were described as 'very positive and constructive'.

"Detailed proposals will be submitted to the ECB and will be further discussed during the month of May.

"This is in line with the ECB concluding its strategic approach towards Twenty20 cricket.'' The ECB have also moved to clarify their stance on the involvement of England players in the IPL.

Chairman Giles Clarke has previously said no centrally-contracted player will be released to take part, but tonight they say there is no ban.

That may appease the likes of batsman Kevin Pietersen, who has said it is "ridiculous'' to prevent England players playing unconditionally.

The ECB have now indicated a willingness to allow players to be released from their central contracts to play providing there is no clash with international commitments.

The statement added: "The England team director will continue to determine which players can be rested or released from their central contracts from time to time on the basis that the 'future tours programme' always takes precedence.

"The ECB will act in accordance with this policy but has never stated that centrally-contracted players are banned from IPL.

"It should be noted that in 2008 and 2009 the npower Test match series clashes with the scheduled dates of the Indian Premier League but future schedules of the IPL from 2010 onwards are yet to be released.'' The ECB's statement follows comments from Test captain Michael Vaughan that it would be "naive'' to think England players will not be involved "sooner rather than later''.

With central contracts up for renewal at the end of the season, there could always have been the possibility that some players may opt not to sign.

So far Hampshire captain Dimitri Mascarenhas, who is not contracted, is the only England player to commit to the IPL.

Vaughan told Sky Sports News: "I've heard so many people say that all the best players in the world are there and you want to go and play in it.

"So I think we're all naive if we don't think that England players are going to end up playing in the IPL.

"I'm excited to see how it looks when it starts on Friday, I think there is going to be a lot of passion from the players who play and those watching in the stands.

"It is certainly looking like a very exciting spectacle. I've seen a few of the previews over in India with the adverts and the billboards, and it looks like it is going to be a big event.

"If there are big grounds, and there is a lot of money involved, you're going to want to play in it and I think it will be sooner rather than later that we will see England players playing in the IPL.'' The 33-year-old sees big opportunities for the Twenty20 game and is excited about the prospect of new events.

"At the minute it is not possible with the schedule but I am sure in time something will happen to allow all top players in the world to play, because it is a huge spectacle and also one which brings in so much revenue to the game,'' Vaughan added.

"It really is something that could be quite powerful and something that all players around the world will want to go and play in.

"Maybe there will be a league set up in England, and with leagues set up elsewhere there could be something like the Champions League where the top few who win their leagues go and play in a 'Super 14' style of event, but that is a long way down the line.

"Certainly it is not a negative thing for the game - it is exciting for the players, it is exciting for the supporters, so we should look forward to it.''