The regulations, to be introduced for clubs taking part in European competitions like the Champions League or Europa League, will be followed by English clubs in the lower leagues as they seek long-term financial sustainability.
Saddled with around £700 million of debt and many examples of clubs going into administration, Football League clubs have decided they can get their houses in order by adhering to UEFA's break-even rules.
"Too many clubs have got too much debt and this is designed to try to take costs to below the levels of revenues so that we can afford to stay in business in the long term," Clarke (pictured) told Reuters in an interview.
"That will significantly reduce insolvencies in the game."
The decision to follow the rules was agreed at the League's summer conference and comes in the wake of a spate of clubs going into administration in recent years such as Plymouth Argyle and Crystal Palace.
"Our clubs have decided they want to put regulations in place that take Football League Clubs towards financial sustainability and the UEFA rules are designed to do that so we are going to adopt them," said Clarke.
"Regulation of our financial performance is important to reduce the amount of financial risk in our game."
Adopting the European governing body's rules, which aim to curb reckless spending by clubs and encourage them to live within their means, could also help those clubs who get promoted to the top tier of English football.
"They will go into the Premier League with a manageable cost structure which they can then chose how to invest and be competitive in the Premier League," Clarke said.
"They are defining their perimeters, the definitions and the sanctions during this season with the objective of putting sanctions in place for the 2012/13 season," he said.
"It will take a while to reduce debts and get finances under control but we can certainly get to a point where we are making financial insolvency the rarity."
