Cape Town - Arsene Wenger says stockpiling players and then having to send them out on loan "is one of the big problems in the modern game".
A number of wealthy clubs buy up players without any real plans as to how they will be incorporated into the set-up.
This applies to talented young hopefuls who earned big-money deals with top clubs only to be loaned back to their parent clubs or spend years out on loan going at different teams as they fail to make the grade at the club's that initially forked out for their services.
Chelsea are one such Premier League club that has 30 players out on loan.
Speaking to the Arsenal magazine, the Arsenal boss said: "It is one of the big problems in the modern game.
"You've invested a lot of money into players because we're paying more and more money, and then at the age of 20 you don't usually get much money for any of the players, so the reflex is to stockpile the players. That's not right.
"When you look at the number of loans that happen here and there, the whole system has to be thought about again because we have two kinds of solution in there."
He added: "The first is to continue developing players, the second step is just to make sure your investment is safe – that's not the right way to think about it but it's the natural reflex for the clubs."
When quizzed on a potential solution, Wenger added: "Maybe you could create a possibility for some clubs to own part of a League One club as a feeder club.
"After that, a limitation on the number of players on your books could work.
"The way a youth team is organised now is that all the best young players go to the richest clubs, which is where they have fewer chances to develop, so you have to make sure the system shares out the best young players equally.
"It's difficult because the development of the players depends on the concentration of the good players. The more good players you have together, the more chance they have of becoming even better players."