European Club Association chairman Andrea Agnelli has said that "the "green light" has been given to introduce a third competition as of the 2021/22 season".
"Following demands by ECA members to increase the overall number of clubs participating in Uefa's club competitions, the preferred option is to develop a third-tier competition of 32 teams", said a statement published by the ECA.
Uefa are set to introduce a third European club competition in 2021..
It was an idea first put forward in 2015 and should offer more chances for Scottish clubs to progress in European football.
Agnelli also said clubs want a "detailed assessment of the existing worldwide match calendar" after 2024, as the "current model needs modernising".
The ban, suspended for two years, was related to numerous crowd incidents in last season's Europa League in games against RB Leipzig and Salzburg as well as in the final against Atletico Madrid in Lyon.
"It is nearly obvious that a third competition will be added".
Although the precise details of the new tournament are still unclear, the decision will stir memories of the European Cup Winners' Cup, which was contested for nearly four decades between 1960 and 1999 by the winners of Europe's domestic cup competitions - although the inaugural 1960-61 competition wasn't officiallly recognized until two years later.
The European Cup was the original and most prestigious event, starting in 1955.
This means the Europa League's group stage would be reduced from 48 teams to 32, with the new competition and the Champions League all having the same number.
The competition, which will take place alongside the Champions League and Europa League, is just awaiting final approval from the executive committee.