The Football Association of Wales (FAW) is to be told it could lose responsibility for the game if it does not modernise.
The Football Association of Wales is to be warned it must modernise and do more to develop the game in Wales or face losing significant public funding.
The draft report of a Welsh assembly football review accuses the association of lacking strategy and criticises its organisation and governance.
A committee of Assembly Members meets today to approve its report into the future of football.
The document is expected to be agreed by the culture, Welsh language and sport committee.
BBC Radio Wales understands the draft recommendations say the FAW has not been effective enough in developing the sport.
The FAW would not comment without seeing the report.
It adds that they will give the body a year to change the way it works.
The highly critical document said the overall picture was "one of some confusion and lack of co-ordination, with no obvious plan or vision for Welsh football".
The confidential document identifies three fundamental issues:
Football in Wales needs a strategy and vision
The FAW needs to "modernise and gain the confidence of the football community"
the FAW needs to "take visible responsibility for the overall direction and development of football in Wales"
One of the key stakeholders, the governing body of football, chose not to engage in our discussions Rosemary Butler AM
The report warned that "without necessary change, governing body status could be removed from the FAW".
It continued: "This would have unfortunate consequences for the sport as a whole, including Wales' recognition by Uefa.
"The committee does not wish this to see that happen and believes that if the recommendations in this report are accepted by the FAW, the concerns of the Sports Council of Wales and the Welsh Assembly Government will have been met."
The document also suggested that the assembly government and Sports Council for Wales should seriously consider how much money they put into football if the FAW did not immediately commit itself to acting on the report's recommendations.
In the report's foreword, committee chair Rosemary Butler said she was dismayed that the association refused to take part in the review.
She said: "It has... been something of a disappointment since one of the key stakeholders, the governing body of football, chose not to engage in our discussions."
She concludes: "The committee believes that the most popular sport in Wales deserves the best from those who govern it."
The report called for a review of progress on its recommendations to be held within 12 months of the document's publication.
The FAW has not yet seen the report and is not prepared to comment until it has.
The issue will be covered in depth on Dragon's Eye on BBC 2W at 2030 GMT on Thursday, and on BBC One Wales at 2235 GMT.
The issue will be covered in depth on Dragon's Eye on BBC 2W at 2030 GMT on Thursday, and on BBC One Wales at 2235 GMT.
