The fixture would take place annually between players from the two islands’ local football leagues.
The contest would be independent of and would not be intended to impact the historic Muratti Vase.
Former Guernsey FA boss Phil Corbet is spearheading the plans and it is understood that draft documentation will be circulated to both the JFA and GFA in the coming weeks.
Corbet was in charge of the green and whites for six years between 1997 and 2003, taking charge of the side for several Muratti fixtures during his tenure.
The Sarnian is now involved with the Guernsey Football League and believes that protection of local club football across the two islands is paramount moving forward.
He said: “With the establishment of Guernsey FC and Jersey Bulls, the vast majority of the players that take part in the Muratti Vase come from these sides.
“It is clear that the two clubs have provided excellent opportunities for Channel Island players to take the next step in their football careers and get exposure against mainland opposition at a high level. However, at the same time there has been an inevitable impact on local league football.
“Participation numbers in local football through the juniors and into senior men’s and women’s football remains strong post-pandemic and the aim is to continue the interest in the sport at a competitive level.
“We want to incentivise those not involved in either Guernsey FC or Jersey Bulls to continue playing and training and this fixture would give players something to work towards.
“There is a great level of pride in representing your island in inter-insulars and I feel that an inter-league representative fixture would be something local club footballers would enjoy.”
Football in the Channel Islands has continued to go from strength to strength over recent years, with an increased number of players signing professionally to continue their careers away from the bailiwicks.
Guernsey’s Alex Scott and Jersey’s Luke Harris squared off for Bournemouth and Fulham respectively in the Premier League on Boxing Day, with the Sarnian providing an assist en route to a 3-0 victory for his south coast side.
“We want to see more players have the opportunity to develop their games and reach higher levels,” Corbet continued.
“If we can protect our local leagues and the players involved, it can only benefit us.
“It would also mean that if they want to make the jump to Guernsey FC or Jersey Bulls, if the standard of football stays high, they will be better placed to make an impact for the two outfits.”
Corbet has welcomed feedback on the idea from local footballers and clubs across the two islands.