The Premier League’s so-called big six have been forced to accept defeat in their battle for a bigger share of £1bn of overseas TV revenue.

Some of the other Premier League clubs banded together to oppose strongly a proposal that would have seen 35% of the money distributed according to league position.

A meeting planned for Wednesday in London was cancelled when it became apparent no agreement would be reached. The current arrangement, in place since the Premier League came into existence 25 years ago, distributes overseas television revenue equally between all clubs.

In an attempt to appease the six the Premier League’s executive chairman, Richard Scudamore, had suggested a model whereby 35% of the money would be distributed according to league position.

Liverpool, Manchester United, Manchester City, Arsenal, Chelsea and Tottenham Hotspur were believed to have pulled West Ham United, Leicester City and Everton on board but the agreement of 14 clubs is needed to effect such a substantial change. Stoke, Swansea and Crystal Palace are understood to have been the three clubs most fervently against the proposed change.

A meeting of representatives from the 20 clubs this month had ended without resolution and it is believed Steve Parish, the chairman and part-owner of Palace, called a meeting with the 13 other clubs to ensure they held firm. The six have pushed for change because they believe they are more responsible for the growing overseas interest and therefore deserving of a larger slice of the income.

It is understood the Premier League is not concerned that this setback could cause the six to look at establishing a breakaway league, possibly with other European clubs, with any such move needing to be approved by Uefa.

It is not the first time some clubs have suggested they are worthy of a larger share of TV money. In 2011, Ian Ayre, then the Liverpool chief executive, intimated that certain others lacked pulling power abroad. “In Kuala Lumpur there isn’t anyone subscribing to ESPN to watch Bolton,” he claimed.

However, it is the first time it has reached the negotiating table and Scudamore has been desperate to keep both sides happy. He may now look at offering a different deal but will be wary of pushing the six into a breakaway move.

The Premier League said in a statement: “Clubs have been discussing the distribution formula for their international broadcasting revenues. The Premier League has facilitated these discussions, to bring together the wide range of views which exist. It has become clear there is currently no consensus for change, meaning tomorrow’s club meeting is not necessary.”