Fifa is set to give more than $1bn in prize money to clubs participating in the Club World Cup as the European Club Association (ECA), negotiating on behalf of clubs in Europe including Chelsea and Manchester City, closes in on a deal.

Multiple sources have confirmed to BBC Sport that the 32 clubs involved, including 12 European clubs, will split what is anticipated to be the biggest prize in club football across a seven-match format.

It is partly based on the $1bn exclusive global TV deal agreed with sports streaming service DAZN in December.

The inaugural tournament, taking place in the United States, begins on 14 June and finishes with the final in New Jersey on 13 July.

On an individual club basis, those involved will receive a participation fee for entering the group stage and performance fees based on progression to later rounds.

Multiple senior sources have explained that Fifa and the ECA are also in talks about bringing in substantial solidarity payments for non-participating clubs, which is expected to be followed by similar distributions for clubs in Africa, Asia and the Americas at a later date.

“The Fifa Club World Cup will not only be the pinnacle of club football, but also a vivid demonstration of solidarity that will benefit clubs at large to a scale that no other competition has ever done,” said Fifa president Gianni Infantino.

“All revenue generated by the tournament will be distributed to the participating clubs, and via club solidarity across the world, as Fifa will not keep a single dollar. Fifa’s reserves, which are there for global football development, will remain untouched.”

The ECA is yet to comment publicly about the negotiations.