The move follows warnings from Uefa that this requirement could lead to some countries' bids for clubs being favoured over others and amount to political interference in football.
The government will introduce the football governance bill in the House of Lords today.
Setting up an independent regulator to oversee men's elite football in England was a Labour manifesto commitment, building on plans drawn up by the Conservatives in
Jonathan WilsonThe big question: is modern football actually governable?Page 36 government. The bill drafted by the Tories stated the regulator's decisions on future or incumbent club owners should consider "the foreign and trade policy objectives" of the UK government.
This came under criticism from Uefa on the basis that it could mean special treatment for countries with which the UK has close trading and political links.
England is due to co-host the 2028 European Championship with Scotland, Wales and Ireland but there were some fears this could be jeopardised by Uefa's concerns about the new regulator.
Keir Starmer told reporters last month that he was in talks with Uefa to assuage its concerns.
The prime minister suggested at the time that the proposals did not need to be changed and that the European football body had "slightly reduced their concerns as time has gone on".
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