"The ICC executive board is expected to consider the proposal at the next round of meetings later this month," the report said.
The two-tier Test system, if introduced, may threaten the continued participation of bottom-tier teams like Zimbabwe and Bangladesh in Tests and open the door for associate teams like Ireland and Afghanistan to get a taste of the game's original format at the highest level.
However, in a 'no-disadvantage' condition, according to the plan, none of the current ICC full-member nations will lose Test status or its financial advantages even if they are relegated to the lower rank, the report said.
With the World Test Championship running into trouble with unenthused broadcasters, the ICC is considering the option of introducing the promotion/relegation system with play-offs for Test status once in four years.
Associate nations, meanwhile, will have to perform well against lower-ranked full members to press for a spot. "This will provide strong incentive for nations currently playing Test matches to improve themselves while also offering opportunities for associates to compete at the highest level," the report said.
Reportedly, the ICC is also considering greater financial reward for the team which earns the No. 1 spot in Tests. Current rules requiring all full member teams to play against each other may also be eased, reducing the pressure on members to follow the Future Tours Programme (FTP).
The report stated that former England captain Michael Vaughan was the first to press for a two-tier system in Tests, writing in his column in the Telegraph: "Just imagine if New Zealand have to come to England and win one out of three Tests to stay in the first division or win promotion.
If there is a proper financial incentive to playing in the first division, like there is in football's Premier League, then players would be less likely to choose the IPL instead."
The ICC has already said the promotion/relegation system may be introduced in One-day Internationals following the 2019 World Cup.
It now appears the World Test Championship, postponed first from 2013 to 2017, may not come to pass after being cold shouldered by broadcasters and sponsors who are concerned about its appeal.
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