Football Federation Australia (FFA) has approved the FFA Cup for a 2014 kick-off, subject to commercial arrangements.

The much-anticipated knockout tournament, based on England's FA Cup, will feature around 700 teams across Australia with the A-League sides to join in September and October at the same time as their season starts.

FFA chief David Gallop, who has previously said the competition was a priority for his administration, said in a statement the board approval for the tournament was a big step forward for Australian football.

"The idea of the FFA Cup has captured the imagination of the football community and there's a huge groundswell of support," Gallop said in a statement.

"Everyone in the game is keen for this concept to come to life, but the prudent way forward is to ensure the right commercial and organisational foundations are in place.

"FFA management now has a mandate to conclude the many positive talks we've had with broadcasters, sponsors and commercial partners."

The FFA Cup is planned to include amateur and semi-professional clubs - including teams from the National Premier Leagues - as well as the A-League clubs entering the draw at a later stage of the tournament.

The options allow for existing state and territory-based cup competitions to remain in place as feeder competitions to the national cup.

The nine state and territory member federations and 10 A-League clubs have endorsed the proposal to stage the inaugural FFA Cup within the calendar year, with a cup final in December 2014.